"If you look at the research at what consumers are spending their time doing, the PS2 is still right up there in terms of time usage. There is a huge number of people still playing the PS2," Riccitiello told the UBS Global Media and Communications Conference on Wednesday. "My belief is the first platform that gets to $149 is going to inherit much of that business. And the Wii's best opportunity – they've got the lowest cost platform out there – if they drive price I think they can really do well."

Without a price cut or other form of innovation, Nintendo could struggle next year when rivals Sony and Microsoft launch their motion control systems, said Riccitiello.

"$199 up against an Xbox 360 is a tougher compare especially in a world when Natal comes."

"I've often thought of Electronic Arts' best position is of making bullets in a war and we sell them to all sides. Right now there's a lot of reason to believe that all three platform owners are going to have to get aggressive next year. Two have already announced their intentions for product innovation. He added: "There's a winning hand for all three of them and we'll see who gets aggressive enough first. The Wii is not gone. But if they maintain $199 and don't innovate they're going to have a hard time competing with what's already been announced from Microsoft and Sony."