Speaking at a UBS business conference this week, boss has urged to continue innovating in order to maintain their edge in the face of stiff from and Microsoft.

Speaking about the Wii, Riccitiello believes third-parties remain to be convinced: "It's a very compelling platform. Third-parties can do a lot better on the platform with the right support from Nintendo. They've always been first-party-centric, and they're learning how to be third-party supportive.

"My belief is the first platform to reach 149 USD [like PS2] is going to inherit much of that business. The is not gone. But if they maintain 199 USD and don't innovate, they're going to have a hard time competing with what's already been announced from and Sony."

More as we get it, thanks Gamaustra.

By Luke Guttridge