Just like how Nintendo was killed off when they put the Wii up against the vastly more powerful 360 and PS3?
Anyway, this is a weird rumor. I though MS went on record saying they weren't showing Nextbox stuff at E3. I know Sony said that.
I don't think anyone was saying that Nintendo going to get killed off by the 360 and PS3. Microsoft and Sony was touting that consumers would be purchasing two systems, the Wii as one of them and either the 360 or the PS3. This next generation will be vastly different with Nintendo pricing themselves out of their market.