Nintendo has confirmed that Australians will miss out on a price cut to the Wii, while retailers say recent cuts to its arch-rivals, the PlayStation 3 and Xbox 360, have allowed the consoles to significantly threaten the Wii's dominance.

Separately, EBGames CEO Steve Wilson said his network of stores may not stock Sony's upcoming handheld console, the PSP Go, due to tensions over how to split the profits.

Although the Wii has sold for $399 since its launch, Nintendo Australia said it had no plans to pass on the $US50 price cut announced for the US this week. However, a spokeswoman said the company would be implementing "a range of software bundles" for the Christmas shopping season.

On Tuesday, Microsoft cut the price of its Xbox 360 Elite console by $100 to $449. Those buying the console before October 20 will receive a bonus copy of Halo 3: ODST.

And on September 3, Sony effectively cut the price of the PlayStation 3 by $200 with the launch of the $499 PlayStation 3 Slim. The new model is smaller and lighter than the previous PS3 and bumps up the built-in hard-drive space from 80GB to 120GB.

"The last few weeks have seen quite a major change because you've seen the price drop on the PlayStation 3, so obviously Sony's been moving significant numbers of PS3 in the last few weeks," said Wilson.

"Xbox [also] dropped the price on the Elite model this week ... [so] as we speak the three formats are closer together than they've ever been on a weekly sell through."

Sony said the price cut allowed it to sell 40,000 PS3 Slim consoles in the first two and a half weeks, including 21,000 in the first four days.

However, in terms of total units sold to date, the Nintendo Wii still reigns supreme on 1,380,000 units as at the end of last month, market watcher GfK said. This compares to 700,000 for the Xbox 360 and 540,000 for the PS3.

At the Tokyo Games Show this week, Sony said that it planned to release a new Wii-like motion-sensitive controller for the PS3 some time next year. This will compete with the intuitive Wii-mote and Microsoft's upcoming Project Natal, which allows users to interact with the console using gestures.

Meanwhile, Sony plans to release a new miniature version of its PSP console, the PSP Go, next Thursday. But Wilson said EBGames, one of the largest game retailers in the country, had still not reached an agreement with Sony to stock it.

Unlike the regular PSP, the $449.95 PSP Go does not use disc-based games, instead requiring users to download games over the web directly from Sony.

Wilson said this made selling the device difficult because, typically, retailers earn little to no profits from the consoles and make up for this by selling games.

"The old business model where you sell hardware for a loss because you're going to sell games doesn't really work - so we're just trying to work out a model that allows us to make some money selling the hardware," Wilson said.