14 DAY TRIAL // The Fair Trade Commission of Japan announces that it has fined Sharp, the big electronic manufacturer, 261 milllion Yen, which is about 3 million dollars, because the company was judged to have rigged prices for LCD modules used in the manufacturing of both the original Nintendo DS and of the newer DS Lite. The fine must be paid by Sharp until March 19, 2009 and the investigation of the Fair Trade Commission of Japan is continuing.
Sharp has issued a statement saying not having violated any law and, while it’s true that all LCD modules for the Nintendo DS were supplied by Sharp and Hitachi Display, other suppliers were always free and even encouraged to compete for Nintendo's business and eliminate all opportunities for price fixing.
Sharp says “We understand there is no precedent in Japan that a cartel in violation of Anti-Monopoly Act was found for a specific product which was sold to one private company for use of a single product model. Therefore, since Sharp would like to insist its company's view on this matter, we will determine next steps, including whether to request a hearing.”
Nintendo has not commented on the issue, but as the world wide economic downturn worsens and threatens the videogames industry, the console manufacturer must be looking for ways to cut down the costs for the Nintendo DS. If Sharp really fixed prices, then Nintendo might be inclined to look for other suppliers and, if the price asked is lower, we might even see a reduction in the manufacturing cost and in the sale price of the Nintendo DS.
This year, Nintendo launched on the Japanese market a new handheld model, called the DSi, which sports two cameras and better Wi-Fi connectivity. The console will arrive in North America and in Europe in mid-2009.