Nintendo Co Ltd's video game console Wii outsold Sony Corp's PlayStation 3 by a ratio of three to one in Japan in August, but Nintendo's overwhelming lead in the market narrowed for the second consecutive month.

Nintendo sold 245,653 units of the Wii in the four weeks ending Aug. 26, compared with 81,541 units of Sony's PS3, game magazine publisher Enterbrain said. The ratio was more than four to one in favour of the Wii in July and six to one in June.

Sony's PS3, packed with cutting-edge technology such as a Blu-ray high-definition DVD player, has been trailing the Wii in sales since the consoles were introduced late last year, due to the PS3's high price and a scarcity of strong game titles.

But the Tokyo-based electronics and entertainment conglomerate plans to launch a wide range of new games towards the critical year-end shopping season, including the latest installment of its popular in-house racing game Gran Turismo.

Gran Turismo 5, one of the most eagerly awaited titles for the PS3, is set to go on sale in October, in a bid to ignite PS3 demand among devoted game fans.

Microsoft Corp, locked in battle with Nintendo and Sony over dominance in the $30 billion global video game industry, sold 11,288 units of its Xbox 360 in August, Enterbrain said.

Shares in Sony closed up 0.4 percent at 5,600 yen, while Nintendo fell 1.7 percent to 52,800 yen. The Nikkei average was down 0.27 percent.