In an interview with TV Tokyo, Microsoft's Bill Gates has said that their biggest competitor isn't Sony's PS3, but it's Nintendo's Wii.

“The strength of Nintendo on the portable space has been very impressive and surprised a lot of people; and the strength of the Wii; and we see Nintendo as the toughest competition,” said Gates.

Considering Nintendo's success with sales of the DS and its games, not to mention the successful Wii launch, it comes as no suprise that Gates sees the Japanese giant as his main opposition.

Over the Christmas period Nintendo have enjoyed mammoth sales of Wii across the Globe, whereas Sony haven't faired too well with many retailers claiming that they still have PS3s in stock despite the well documented launch shortages.

Nintendo have also had huge success with the DS. Since its launch in March 2005 the handheld has sold more than seven million consoles across Europe.

Check out the short interview (albeit with the host talking in Japanese) at: YouTube