The move is part of a global strategy by game companies to spur sales ahead of the crucial year-end shopping season. Sony also announced a price cut.

An official of one of Jamaica's major video-game retailers, Royale Computers and Accessories, who requested that his name not be published, said local buyers could expect trickle-down savings in coming months.

"We already have stock now so I don't see that price cut right now," said the official, who added that the store would receive the discounted Nintendo Wii in about two weeks.

Currently, Royale Computers sells the Wii for $30,000 - tax inclusive - while Watts New, a major islandwide retailer, tags the Wii at $32,500 plus tax.

The Royal Computers administrator acknow-ledged that that company's sales had been affected by the downturn in the global economy, which has also sapped consumer interest locally.

"We've seen a drop in sales of about 20-30 per cent," the official said.

Watts New said none of its officials were available for comment.

In Japan, the Wii's price will be cut to 20,000 yen (US$220) from 25,000 yen starting October 1, The Associated Press reported the company as saying Thursday. In the US the day before, Nintendo said the console's price will be lowered by US$50 on Sunday to US$200.

reductions

Prices in Europe were also expected to be lowered by about the same amount.

Hours after Nintendo's announcement, Sony Corp announced a price cut in Japan for its PlayStation Portable model called PSP-3000 by 15 per cent to 16,800 yen (US$190) from 19,800 yen (US$220), starting October 1. The price had already been cut in the US to US$169.

The latest reductions follows similar moves by Sony for its home console PlayStation 3, as well as by Microsoft Corp, which makes the Xbox 360.

Console price cuts are customary for the video-game industry after the systems have celeb-rated a birthday or two, because they help lure in mass audiences who don't want to spend large chunks of cash on them.

With the latest round of price cuts, Nintendo Wii, the best-selling home console, maintains a price edge over its rivals on home machines. But PSP-3000 will be cheaper than Nintendo's DSi, at 18,900 yen (US$210) in Japan and about US$170 in the US.

Sony said in August it would cut the price in Japan for its popular PlayStation 3 to 29,980 yen (US$330). US-based Microsoft said last month it was cutting the Japanese price for its high-end Xbox 360 game console by 25 percent to 29,800 yen (US$330).

Nintendo had earlier said it had no plan to slash the price for the Wii. But company spokesman Ken Toyoda said the company hoped to "spur sales" with cheaper Wii consoles.

"With the price cuts both in Japan and the United States, we want to spur sales during the upcoming year-end shopping seasons," Toyoda said.

The global recession has made price cuts important, especially as game companies gear up for the holiday shopping season, when the video game industry makes most of its money. Without the price cuts, it would be difficult to entice budget-conscious shoppers to buy the machines.

The Wii, whose game control senses motions without having to rely solely on buttons and levers, is the top selling console worldwide. Launched in 2006, Nintendo's Wii has sold more than 52 million units worldwide so far, outselling the PS3 and Xbox 360.

In Japan, the Wii controls 65 per cent of the game market, worth 550 billion yen, according to data from Tokai Tokyo Securities Co Ltd. Sony's PlayStation has 26 per cent of the market, followed by nine per cent for Microsoft's Xbox.

- The Associated Press contributed to this report.