How much is the 3DS?

Then we can talk.

For your first paragraph:  Nintendo actually has billions of dollars in reserve.  And by that, I really do mean "just sitting around."  I once heard that Nintendo could stop releasing even one product, continue to pay all of its current employees their current salaries, and still operate without a hitch for several years.  Nintendo's worth more than Sony (it was the number two company in Japan for a while).  They wouldn't be stupid enough to burn money for marketshare, but if they wanted to, they completely could.  Don't buy into the myth!

For your second paragraph, I've got some light reading you can look into, if you have the time and inclination to learn more about how the Wii really was a direct move against its competitors.

Six Hundred U.S. Dollars!

I would like to, but not now...there are still some other intersting things I want read around and it's almost bedtime for me.

Blue ocean stands alone, but you can't disrupt by going after what you competetor already has a lock on, which is the red ocean. So to start disruption you need to go after the blue ocean by default.

I demand to know how you can quote twice

Copy or cut the quote. It isn't that hard.
Add in the next one.

On the contrary, you can disrupt without ever entering the Blue Ocean.

Think of the example of the steel mini-mills.  They disrupted the established steel industry, but they did not begin by finding customers who didn't use steel, or who were underserved (i.e. Blue Ocean tactics).  What they did instead was find established consumers of steel, and offered them a cheaper way to purchase a low-end product (in this case, rebars).  Again, these consumers were not new: they already purchased rebars from the established steel mills.

Because the profit margin on these was so low, the established mills were okay with ceding that area to the mini-mills. The problem is that those mini-mills then gradually moved up the product chain until they became the new kings of steel. To sum, the upstart disruptor can succeed by going after the competitor's established territory, as long as it targets an area that the competition possesses but does not care enough for to engage in a sustained competition.

Disruption only requires that you offer a new value, not that you find new customers.  It may be easier to start when you're unopposed (Blue Ocean), but it's not necessary to do so.

Okay, but in this case, Nintendo got back on top with the blue ocean, and are now going upmarket.

It all makes sense now. Gunpei Yokoi invented a time machine in the early 1990s by duct taping two Game Boys to a radioactive capacitor. Through this monochromatic portal, he saw the Sony 3D Death Machine coming, he had to do something. He invented the Virtual Boy in a bid to battle the Bravia blitz that was to be.

You might ask, why didn't he see the Virtual Boys failure and his own demise in an automobile accident with his Time Boy? Quantum interference from Blast Processing, that's why.

But he still fought the good fight. RIP Gunpei

That, we can agree on!