Since its release at the end of 2004, the Nintendo DS and its innovative dual-screen and touch-sensitive controls have forged forward throughout the gaming industry to see the little clamshell handheld placed as the world’s most popular videogame platform.
Sharp and Hitachi under investigation in DS screen price-fixing probe. Credit: Baston/Flickr.
However, while nothing other than positives have thrust the Nintendo DS to its industry pinnacle, a fair trade investigation directly connected to the DS and its display screens is threatening to blight an otherwise impeccable history.
Hardware and software creator Nintendo is not implicated in the Japanese investigation, which is instead focusing attention on consumer electronics giants Sharp and Hitachi for their apparent roles in fixing the prices of the LCD display screens utilised in the DS.
According to a tip given to the Associated Press by an unnamed Fair Trade Commission (FTC) official, both Sharp Corp. and Hitachi Display Ltd. have had offices and factory facilities searched by investigators regarding accusations of LCD panel price fixing reaching as far back as 2005.
Osaka-based Sharp and Tokyo-based Hitachi Displays are the only suppliers of the DS dual screens used by Nintendo, with Sharp having provided the small panels since the console’s launch in November of 2004 before Hitachi joined as a second supplier towards the end of 2005.
According to the FTC official, Japanese investigators believe the price fixes began roughly around the time that Hitachi joined the supply chain and were uncovered during a much wider display panel probe involving trade watchdogs from Japan, South Korea, America and Europe.
Both Sharp and Hitachi Display have confirmed that raids have taken place on their facilities, although they have not divulged any details related to the accusations. Nintendo has commented by saying it is presently too early to gauge the impact of the accusations or whether the company will seek alternative panel suppliers.
Sharp and Hitachi Display will be hit with a fine representing around 10 percent of their illegally-gained sales if fixed prices of Nintendo’s LCD screens is confirmed.
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