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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%.