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There is no blue ocean anyway ... Sony and MS both laid down the gauntlet at E3 by showing Natal and the Sonywand.

So that will be a red ocean very soon.

Nintendo has to be aggressive NOW and sell as many systems NOW and be as strong as possible leading up to that inevitable battle next year.

They will lose marketshare if they are not aggressive. When Nintendo thinks they're special or above market shifts ... that's when they get their ass kicked (pardon the pun). 

Its exactly that attitude and quite frankly -- arrogance -- that caused them to piss away most of their marketshare to Sony in the 1990s.