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Report: Component Makers Hit By Wii Production Decrease

Report: Component Makers Hit By Wii Production Decrease

December 2, 2009 | By Leigh Alexander

December 2, 2009 | By Leigh Alexander
More: Console/PC

Japanese component manufacturers Mitsumi and Hosiden, who provide parts for Nintendo's Wii, are blaming the console's declines this year for major hits to their finances -- and the companies say Nintendo is scaling back Wii production.

The company could see revenues decline as much as 50 percent this year, which would represent something of a reversal of fortune for companies acclimated to the days of Nintendo's annual warnings of supply constraints for its popular hardware.

The news comes from a Nikkei report picked up by widespread media outlets including VG247, which reports parts orders for Wii are down 30 percent so far this fiscal year.

Nintendo president Satoru Iwata recently said Wii unit sales in Japan "cannot be defined as healthy," and described the console's loss of momentum as "urgent."

However, the company recently revealed that Wii's late September price cut to $199 drove up console sales 85 percent on a weekly basis in the U.S.

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