In a recent Yahoo News article, Nintendo admits that it is not seeing the strength it wishes to have in Japan.

“The Wii is in the most unhealthy condition since it hit the Japanese market,” Nintendo Co. president Satoru Iwata said. “The current condition in the Japanese market is not the one we want.”

Fortunately for Nintendo they are still the Market Leader, giving them a little breathing room when it comes to pricing.

“A price cut in a difficult economy cannot really excite the market and drive up sales. As of now I really don’t think that a price cut is a good option for us,” he told a news conference.

Japanese sales of the PS3 surged 80 percent in the five weeks to March 29 from a year earlier to 146,948 consoles, while demand for the Wii plunged almost 63 percent to 99,335, publishing firm Enterbrain Inc said.

Iwata said the Wii had flown off the shelves after its launch in 2006 thanks to the popularity of a few games. Nintendo has sold more than eight million Wii machines in Japan, but demand is now flagging.