Shares in Japanese toy and amusement arcade firm Namco Bandai Holdings fell for a second day on Thursday after it issued a shock downward revision to its earnings outlook and said it would close 50 to 60 arcades, about one-fifth of the total.

A lot of the types of games that people played at an arcade can now be done at home, company spokesman Yuji Machida said.

The move reflects the popularity of Nintendo Co Ltd's hot-selling Wii game console.

Many Japanese children got a Wii last year, particularly over the holiday season, and it seems as if much of their pocket money is now being saved to buy more hardware or software for the console, Machida said.

The Wii, which has gained worldwide popularity, has a motion-sensing controller that can be swung like a bat or sword, and the addition of Wii Fit, which features a pressure sensing board that players can use to simulate ski jumps or surfing, has also propelled sales.

Machida also blamed high gasoline prices that have prompted families to cut back on trips to big shopping malls where many of the company's family-oriented arcades are located.

Namco Bandai is the second arcade operator to announce a major overhaul after Sega Sammy Holdings, which plans to close around 100 of its arcades.

Namco Bandai, known for its virtual pet toy Tamagotchi, slashed its full-year net profit outlook by 38 percent on Wednesday from an earlier estimate to 16.5 billion yen ($155 million).

Its shares ended at 1,095 yen on Thursday, down by its daily limit again and having fallen 27 percent since Tuesday's close. Sega Sammy shares rose 0.8 percent to 1,169 yen.

Sony Corp, maker of PlayStation game gear, rose 2.6 percent to 4,690 yen. (Reporting by Edwina Gibbs, Editing by Michael Watson)