The games console market is set to get a further shake up with retailers being told that Nintendo is set to slash the price of their highly popular Wii console to as low as $299.

The move is tipped to hurt Sony who is trying to sell their new slimline PS3 at $499 which is $156 more expensive than the same PS3 is sold in the USA.

In a conference call with major retailers, Nintendo reportedly confirmed previous rumours that it would be slashing the Wii’s price at the end of the month.

A US leaked Toys ‘R’ Us advertisement and a Best Buy Catalogue which shows a Nintendo Wii slashed to $199, has experts speculating that the cuts will be global.  

Greg Atherton Marketing and Sales Manager at Nintendo Australia said that he could not confirm a price cut, however he did not deny it. Retailers in Australia have told ChannelNews and SmartHouse that a Nintendo Wii price cut will happen in Australia soon.

Currently the Nintendo is the #1 games console in Australia followed by the Xbox 360.

In the USA the Wii will be receiving a $50 price cut to $199 by the end of September. This confirmation comes from a conference call between representatives of Nintendo and major retailers.

According to Web site The Escapist, the Japanese gaming giant told retailers on a call this week that the Wii’s price will indeed be dropped $50 to $199 later this month. Earlier, circulars from both Toys ‘R’ Us and Best Buy had put the new price at $199.