Nintendo GameCube lags behind rivals as retailers slash console's price

The Nintendo GameCube already falling behind its competition in retail sales has been further hit by the news that one of the country's largest retail chains has slashed its price.

Dixons and its siblings Currys and PC World are offering the Gamecube for £99 rather than £129, including a free game. But the console, launched in Britain only in May 2002, fared badly over Christmas and there is now suspicion the chain, which is the UK's largest retailer, will dump it altogether in favour of the best-selling Sony Playstation 2 and Microsoft's Xbox.

Nintendo however insisted yesterday the price cuts were "retailer initiatives" and it is "continuing to actively trade with Dixons". But a Dixons spokesman said the outcome of the promotions will decide whether they will continue selling it in the future. "With three game consoles competing, all sold well in the beginning, but recently sales have favoured the other two formats."

Microsoft's Xbox, costing £159, was launched in March last year, while the £169 Playstation 2 still dominates the market despite being 15 months older. It has sold about 50 million worldwide since its launch; the Gamecube has sold only about 1.5 million so far.

The main problem for the Gamecube has been a lack of games. Although those keen on the platform say it is ideal for console playing, it has had problems attracting games companies to write software.

Britain is the world's third largest video games market, and losing a significant high street visibility would be a serious blow to Nintendo. Sega, once its only rival in games consoles, suffered a similar fate in the 1990s, and now only writes games for other consoles.