Pressure grows on Nintendo as sales continue to slump

London: Video games pioneer Nintendo is under further pressure after sales of its Wii console continue to slump, despite attempts to stimulate consumer interest with price cuts.

American sales figures issued by the Japanese company yesterday suggested that it sold around 550,000 Wii systems during Thanksgiving week — including the notorious "Black Friday" bonanza that serves as a cornerstone for retailers in the run-up to Christmas.

Although senior executives said that it was in a "good position", those figures are down more than 30 per cent on the same time last year, when the company said it sold around 800,000 units.

Innovation

It is the latest blow to the Wii, which became the surprise leader in the lucrative video game market when it launched in 2006 with innovative motion-sensitive controllers and a variety of family-friendly titles.

Although its success has proven a remarkable cash cow for its creators — the company spent several years struggling to keep up with demand — sales have wilted recently, with experts blaming a mixture of factors including the recession, customer apathy and saturation.

It also marks a disappointing response to the Japanese games giant's decision to try and boost sales by ordering a price cut earlier this year, which saw it slash the cost of the console by $50 (Dh183,66) in America to $199.

Sales figures for Britain are not known, but the price of the Wii has remained static in the UK, with customers being offered a new bundle of games and accessories despite the fact that the wholesale price of the console was lowered.

Nintendo's American sales chief Cammie Dunaway told the San Francisco Chronicle that record sales last year made the drop almost inevitable — but that the machine remained a strong contender.

"I think going into the holidays, the Wii is in a very good position," she said. "It has an unbeatable combination of games, experience and unbeatable value, and that continues to put it to the top of people's wish list."