When I read this article by Reuters regarding Wii and PS3 sales in Japan I was a bit dumbfounded.  By the nature of the title it almost sounds like the Wii is doing a good thing by trimming the lead but that's not the case.  This means the Wii is not outselling the PS3 as well as i has in the past.  I've seen this article mentioned on a few game web sites and podcast and the spin has been that this must mean the PS3 is doing better in Japan.  Well that's not the case either. 

The PS3 had good sales in July and August from the price cut but dropped 22% in September.  The Wii has also seen it's sales drop over the past couple months but more to the tune of a 33% in August and 34% in September.  The question that should be asked is whether this is a drop in demand for the Wii or a drop in supply?  I wonder if those 300K unit that disappeared from the Wii's Japan sales in August and September got redirected to North America to combat the release of Halo 3?  The Wii sold incredibly well in September and should have another good month in October.  Nintendo knows that have won Japan so maybe they are willing to sell a few less units there to sell more units in the US where the 360 still has a healthy lead.

Source:
http://www.reuters.com/article/technologyNews/idUST30269720071102