Let's not underestimate Sony and Microsoft . I appreciate what your saying with the blue-ocean strategy but that principle could apply to any business of any size , I don't think that it is exclusive to Nintendo. Now that the Wii is in 1st place you think that Sony and MS is unable to discover and attain new markets in the same way Nintendo has , well if...

(A) Sony hadn't have won the last two generations.

(B) This wasn't Microsofts second generation.

Then you might have had a point . I'll admit I was only thinking about the new demoghraphic that Nintendo created but the fact that I didn't consider demographics beyond this isn't important , this is considerations that employees at Microsoft and Sony are paid to make . The thing is , gaming has changed for good it isn't following historicaly trends as closley as it was in previous generations , I don't know why you can expect the same kind of blue-ocean mentality from Nintendo next gen but completley disregard Sony's and Microsofts ability to do the same.

But this is understandable , people usualy can't envision market underdogs achieving market dominance 5-10 years in the future , that's why the value of Nintendo is significantly much more than it was 5 years ago , that is why Sony lost marketshare wise this generation. And that is exactly why I have every confidence that Sony and Microsoft will discover and capitalise any on new opportunities.

Another point I want to make is does the blue ocean strategy make considerations for the the size of new markets. Example

[___TRADITIONAL_MARKET___][_______________WII MARKET__________][__NEW MARKET__]

As you can see the Wii Market is larger than the hardcore market and fortunatley for Ninendo the targeted the "Wii Market" arguably at the risk of loosing significance in the traditional market . If Nintendo were to attack the "NEW MARKET" then they may risk loosing significance in both the TRADITIONAL MARKET and the Wii MARKET , but you see the size of the NEW MARKET is lesser than that of the other two . My point is Microsoft and Sony may not neccaserily need to capture new markets , if Nintendo lost sigificance in either one of the existing markets then they risk loosing significance even when the discover a new demographic

NEW MARKET doesn't neccaserily mean more profit unless your able to retain existing markets , but the more markets you compete in the more the specs of your device have to conform to the needs of all markets , the less capable the device is at apealing massivley to all markets. This is already evident in the Wii , the traditional developers don't want anything to do with it , we're in a situation where the underdogs in the market are receving the bulk of 3rd party budgets /quality.

I think there's alot of question marks , everyone seems to think next gen will be pretty much the same (I think this is naive) . What I am certain of is that Sony (if they decide to compete) and Microsoft will not simply release the PS4 and XBOX 720 , we're going to see entirely different beasts.