Nintendo sees Wii sales plunge as holiday season begins

Video game console leader Nintendo says that U.S. sales of its Wii gaming system dropped 30% year-over-year to 550,000 for the week ending Nov. 28, according to numbers reported by Bloomberg. Nintendo cut the price of the Wii by $50 to $200 recently, while Microsoft (MSFT) dropped the price of its Xbox 360, and Sony (SNE) chopped the price of its PlayStation 3 console. Recent industry data shows that Xbox 360 sales and Sony PS3 sales have probably benefited from the price cuts.

Nintendo may have a problem that is not easy to address: The Wii may be reaching a point of market saturation. It's aimed toward the casual gamer, while the Xbox 360 and PS3 are marketed to more sophisticated players. Nintendo has tried to offer new game programs to increase sales, such as its Wii Fit, which is aimed at the exercise market. That initiative does not appears to have pushed sales up much.