Times have been tough lately in Mario Land. After being stomped on by an oversized cartoon plumber for more than two years, Nintendo’s rivals are doing their best to shrink Super Mario back down to size. The Japanese entertainment company’s decision on Thursday to knock 20 per cent off the price of the Wii, its popular gaming console, came on the heels of price cuts for rival Sony’s PlayStation3 and Microsoft’s Xbox 360.

Along with the prospect of being dragged into a price war, there is plenty else for investors to feel glum about. Sales of the Wii fell 20 per cent in the first half, NPD market research estimates, while Nintendo’s shares have lost a third since January. And, with both Microsoft andSony preparing to launch their own versions of the Wii’s innovative motion-sensitive controls, Nintendo’s advantage in casual gaming risks being competed away.