Nintendo president Satoru Iwata has revealed that analyst's estimates of the Wii making $50 per unit are slightly incorrect (it's less) but of course the Wii is still making a profit. Iwata was questioned how long can Nintendo stay ahead of the pack for and he commented that there is no doubt the blue ocean will turn red especially with the likes of MS trying to emulate their success. Although, Nintendo as you'd expect are in very high spirits expecting the Wii to sell 14 million units this year alone.

Largely because of Mr Iwata's thrifty innovation, analysts predict that each Wii is being sold at a $50 profit. "It's not as much as that, but it is making a profit," is as much as he will confirm. To put that into context: each PS3 is said to making Sony a loss of up to $200.

This week, in a move that smacked of panic, Sony slashed the price of the PS3 in the United States, to $500 from $600. "A very red-ocean act," as Mr Iwata puts it.

The big question, however, is: how long can Nintendo stay ahead?

"There is no doubt that our blue ocean will turn red," Mr Iwata concedes. "Microsoft, for example, has made it clear that it wants to follow our success."

Mr Iwata says that he just doesn't know how long he has before the console is consigned to the great landfill of history. "We are planning for several eventualities," he says. "But it is hard to know as what we are doing is changing so much in the industry."