Topic: Japanese Government Investigates Price Fixing of DS LCDs

[Crimm]

Sharp and Hitachi targeted by the probes.
 http://www.nintendoworldreport.com/newsArt.cfm?artid=15437

 Two producers of LCD screens used in the Nintendo DS are being investigated by the Japanese Fair Trade Commission on allegations of price fixing.  The allegations date to 2005, when manufacturer Hitachi began producing screens for the DS.  Officials allege that Hitachi reached an agreement with Sharp, who was already making screens for the DS, on what they would charge Nintendo for them.  On February 28, investigators searched the offices and factories of Sharp and Hitachi looking for evidence.    

  Sharp Corp. and Hitachi Ltd. both confirmed the investigation, following a report by the Kyodo News Agency about the raids.  A spokeswoman from Sharp confirmed, "It is true that the Fair Trade Commission is doing an on-the-spot inspection on our company, but we are still trying to confirm further details."  Spokesmen from both companies refused further comment because of the ongoing investigation.      

  Representatives from Nintendo stated, "We are not aware of the reported allegations."  Nintendo representatives declined to confirm whether the complaint to the Fair Trade Commission came from Nintendo or another party.    

  Price fixing is the term for an arrangement between competitors to offer a product or service at the same price, thus avoiding competitive pricing.  Under Japanese law, a company found guilty of price fixing could be fined up to ten percent of the profits garnered from the sale of the items or services in question

[oohhboy]

So if true, Nintendo might have been able to sell even more DS's sooner at a cheaper price?

Considering the volume, both companies would have made a killing from the LCDs. I don't really care either way though, but I would like to see how this turns out.

[Crimm]

It is possible Nintendo could reduce the price if they were being gouged greatly, however I doubt they were paying all THAT much for the LCDs to begin with.

Even if they are, Nintendo might just seek to pocket more of the profit.

[Ceric]

I have mixed feeling about this. If it was LCD screens in general I be like burn them all down but, since its just LCD screens for a very specific device I beleive they would have easily naturally settled.

[Crimm]

I should point out that Nintendo has since confirmed that Hitachi and Sharp are the ONLY producers of LCDs for the DS.

[Kairon]

Y

It is possible Nintendo could reduce the price if they were being gouged greatly, however I doubt they were paying all THAT much for the LCDs to begin with.

Even if they are, Nintendo might just seek to pocket more of the profit.

Yeah, I doubt that this news is a harbinger of the $119 DS. Pity though.

[redgiemental]

I'm pretty interested in the out come of this. What would this do to both companies images among the Japanese public considering how well-loved the DS seemingly is in Japan?

[Crimm]

I doubt it would be much of a PR issue.  Both Sharp and Hitachi are HUGE companies.

[redgiemental]

you're probably right to be fair.