According to the latest reports coming out of Japan, Nintendo is scaling back on Wii production, cutting the number of consoles being manufactured.

Nintendo's suppliers - Mitsumi and Hosiden – now face huge drops in revenue linked to the Wii's "declining fortunes" and the resulting "drop-off in orders from Nintendo to assemble game systems" claims the Nikkei.

Supplier profit's tumble

That report adds that the two suppliers face a massive drop in net profits of over 50 per cent.

This coming Christmas will be Nintendo's fourth holiday season with the Wii. It will be interesting to see if retailers report stock shortages, as they have done the previous three Christmas periods.

Developers, publishers and analysts alike have all recently commented on declining quality in Wii titles, with some claiming that the Wii bubble is about to burst.

TechRadar will be watching out for those post-Xmas Wii, PS3 and Xbox 360 sales figure breakdowns in earnest!

Via Kotaku