Even with a price cut and the holiday season, Nintendo is scaling back Wii production for some reason. Could it be that the gaming system has finally reached a market saturation point or that the company is prepping for the Wii 2? Probably both.

Whatever the reason is, the two Wii manufacturing companies, Mitsumi and Hosiden, will see a 50% drop in net profits because of the reduced order size. But hopefully their production lines won’t be slow for a while and we’ll see the new and improved Wii Xtreme HDTV 1080p 2 system sometime real soon. [via Kotaku]