Some UK retailers like WHSmith already seem to be cutting prices to as low as £200 to make room for you know what.

http://www.vgchartz.com/forum/thread.php?id=81316

And it's sad to see that Sony are still losing money.

Thats what I was thinking. Maybe:

1) WHSmith have more stock than other retailers (highly doubtful)
2) PS3's are selling slower there than at other retailers
3) They are in a rush to clearout for some reason

WHSmith are sadly one of the more expensive places in the UK for gaming, as they always charge the RRP for the games they sell, i mean inFamous was at like £44.99 from their store's where you can get it online or elsewhere for £39.99. I imagine this is to breathe some life into the store (gaming area) and also to clear stock!

Let me guess you also belive there's 10 M of unsold PS2? :)

I don't belive there's over a milion of units of PS3 on the shelves and in magazines of retailers.

Also using PS2 number as example then x360 is horribly overtracked becouse it certainly sells in emerging markets too (still in affordable range, equally easy to pirate as ps2).

Inventory levels (and shipment numbers) get reduced in calendar Q2 for sure.

HW shipments this quarter:  Wii 2.3 mill, X360 1.2 mill, PS3 1.1 mill.   Approx. VGChartz sales this quarter: Wii 2.6mill, X360 1.6 mill, PS3 1.4 mill

All of them have reduced inventory in the channel.

Here in Spain the game stores are selling PS3 for 329€ with some times games and there is similar kind of deal allover EU. So there is no way 1.2 million PS3's are on shelvs right now. Thats about 3 times more then 360's according to VGZ.

One thing's for sure, there are a lot more Wiis in stockrooms today than there were one year ago. Or even six months ago.

I disagree with your reasoning. You seem to think the lower sales not only mean retailers order less stock, but also still have excess stock. While the lower shipment numbers just as easily mean retailers adjusted their stocklevels to the current levels of demand.

Looking at the Wii sales it doesn't really make sense to me for retailers to still have excess stock. Wii sales in the US slowed down in March already, so retailers should have adjusted their stock levels by now. But with a difference of 700k any undertracking is small, so no real reason for any adustments there at the moment.
I do think other numbers indicate some undertracking though. There haven't been real shortages there for a long time, nor an extreme downfall in demand. I simply can't think of a single reason to have 1 million units in stock there at the end of June.
Japan numbers actually seem to be a bit high compared to shipment numbers, but if I recall correctly that problem existed in earlier quarterly earnings as well. So any adjustment there probably needs to be made in older numbers, not the numbers from the last quarter.

PS3 numbers are harder to judge because we don't have a regional breakdown. Just going by their worldwide sales numbers having over 1 million in stock seems a bit high. But then again, the ratio between stock levels and weekly sales is probably higher for a system with lower sales and 1 million in stock at any given time always seems possible to me. Maybe there is some undertracking in a certain area, but it is impossible to pinpoint the exact place at the moment. I'm actually more doubtful of the 360 number than the PS3 number. Personally I find the 400k stock level for 360 extremely low.

According to VGZ numbers there is no Xbox 360 in the stores.

shipments 31.4m , Sales on VGZ 31.4m