Well, it would appear, at this point, that there isn't much they can do to stop something like that. Neither Sony nor Microsoft was prepared for Nintendo to release a truly revolutionary control system for their console, and it is a bit late to start now. Although Sony hasn't released their system yet, I highly doubt that they could take the time to reconfigure their system to allow for something like this, and still be competitive, even if they could get past inevitable patent issues. The 360 has already been released, which means that there is no way that they could possibly adapt to compete with the Revolution at this point. Assuming that the new control system is well-received, that leaves Nintendo in the driver's seat, and Sony and Microsoft wondering how they can do damage control. They can lower prices like Nintendo did with the Gamecube. They can rely on their graphics as their primary draw. Or, they can rely on their game designers to release games that are good enough to support their system.
On a separate note, I'm glad that Nintendo has finally done something to restore themselves to their former glory. Here's hoping they don't screw it up.