The president of Nintendo was asked what Nintendo are worried about in the competition. Reggie quickly cited XBOX Live as a platform that worried him, but failed to come up with a reason as to why Nintendo are worried about Sony's current machine.
Backtracking somewhat he concluded, "they've [Sony] got some great games that they've been able to bring out, some great content, but you look at the results and clearly they've got some challenges".
Without wanting to get too bullish, perhaps we could mention the current state of Sony and Nintendo's platforms in Japan as a reason to worry. Still, in the same interview Reggie confirmed upcoming Wii game Punch-Out!! has two-player local multiplayer. Exciting times, eh?
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