Report: Nintendo Scaling Back Wii Production

According to a report from Nikkei, Nintendo has begun the process of reducing the number of Wiis being manufactured.

The report says that two Japanese companies - Mitsumi and Hosiden - are facing massive losses in revenue this year due to the "declining fortunes" of the Wii and a "drop-off in orders from Nintendo to assemble game systems".

Both companies are now staring at a drop in net profits of more than 50%.

It's funny. It took Nintendo years to ramp up Wii production. They sure cut it back quick enough.

As Nintendo's Wii Stumbles, Parts Suppliers' Earnings Tumble [Nikkei, subscription required]