ds
Hitachi and Sharp Under Investigation for DS Price Fixing
Posted by Kotaku US Edition at 7:00 AM on March 3, 2008
Facing fines of up to 10% of their sales on DS displays, Hitachi Display and Sharp are to be investigated by the Fair Trade Commission, Japan's fair trade group. According to eNews 2.0:
... the institution said on Thursday that the two electronics companies would be investigated because they were suspected of fixing prices of display panels for Nintendo's DS portable gaming devices. The Commission's investigators have already searched a few factories and offices owned by Sharp and Hitachi's display unit, Hitachi Display.
As the only two suppliers of LCD panels for Nintendo's DS and DS Lite they might be punished based on anti-monopoly laws if they have been found colluding to fix prices. In the US and elsewhere we've seen similar cases involving Visa, Mastercard and their member banks. WayTooHigh.com offers the following definition for price fixing:
Price fixing is an agreement between business competitors to sell the same product or service at the same price. In general, it is an agreement intended to ultimately push the price of a product as high as possible, leading to profits for all the sellers. Price-fixing can also involve any agreement to fix, peg, discount or stabilise prices. The principal feature is any agreement on price, whether express or implied. For the buyer, meanwhile, the practice results in a phenomenon similar to price gouging.
Sounds like they've been getting business tips from Bowser.
Hitachi Display and Sharp Investigated by Japan's Fair Trade Commission [eNews 2.0]

Comments (AU Comments · US Comments)
There are currently no AU comments for this post.
A-Rude-Hero
Posted 8:26 PM 3/3/08
@NeoAkira: I don't know, in my area there are 2 cable companies (though is really garbage) and 2 satellite companies. So long as satelite is in the area (which I think is the case in at least most areas) I wouldn't call a cable company a monopoly as their is some type of choice.
A-Rude-Hero
A-Rude-Hero
Posted 8:26 PM 3/3/08
@Lackshmana: No no I understood your intent. The "you" was, as you said, universal, and not in direct response to your comment.
A-Rude-Hero
NeoAkira
Posted 8:26 PM 3/3/08
@baked ham:
Uh, how about the cable monopolies. I think that's a fair place for the government to intervene. Because essentially each cable company has a monopoly on certain areas. Which means consumers can either take it or leave (which they will take it) but no changes will be made through the competitive, liberalistic free-market that this country was founded on.
NeoAkira
1080Peter
Posted 8:26 PM 3/3/08
Some people will complain that Nintendo "won't lower the price of the DS anyway and it'll just pocket the added profit."
Look, that's not the point that Nintendo will get more profit. The point is that two companies are (said to be) participating in an illegal practice -- that of price fixing.
The only way Nintendo, or any other company, will lower prices is a dip in sales or price cutting from a competitor or competition in the form of a new strategy/products..etc. No company is obligated to lower prices until the market dictates so.
I'm not blindly defending Nintendo here. The whole issue need only refer to common sense.
1080Peter
satlos
Posted 8:26 PM 3/3/08
@satlos: ^ From the Japanese side, I mean; at this point, I've filtered out any story regarding EA on this blog.
satlos
satlos
Posted 8:26 PM 3/3/08
At least we're seeing (one of ) the true face(s) of gaming for a change.
satlos
Lackshmana
Posted 8:26 PM 3/3/08
@A-Rude-Hero: I'm not sure if you are saying that I took it seriously, or just using the general "you," for people who might...
But to clarify, my post was entirely satirical. As is often the case. Thus the CNN parody.
Lackshmana
Onizuka-GTO
Posted 8:26 PM 3/3/08
Bowser, he has his claws everywhere!
(except on Princess Peach)
Onizuka-GTO
GogolCoats
Posted 8:26 PM 3/3/08
too many libertarians.
GogolCoats
KirbyMorph
Posted 8:26 PM 3/3/08
I wonder if Nintendo initiated this inquiry or if it was a 3rd party that started the investigation into price fixing.
Also, semi-joking here, I can't see how it's price fixing if, after the price is lowered, the cost of a DS stays the same.
KirbyMorph
WickedSack
Posted 8:26 PM 3/3/08
@baked ham: I know, I mean it's the same situation with the EU fining MS over a billion for antitrust. I mean if people didn't want MS software then they shouldn't buy the computers that are packed in with it. Aren't I right?
WickedSack
A-Rude-Hero
Posted 8:26 PM 3/3/08
@Lackshmana: I don't know about that. Drew took a lot of heat for his HD-DVD eulogy/pity party. Personally I think if the picture is that upsetting to you you need to just gtfo the internet.
Yes yes how dare someone tarnish MS's spotless reputation with a photoshop image. No it's not the company involved but it's a clever joke that highlights the situation at play here.
A-Rude-Hero
baked ham
Posted 8:26 PM 3/3/08
@jetsmanfoley: If that's true, that there are instances where the government needs to intervene, okay. Maybe. I haven't seen an instance where I feel that it would be okay, but I'm open to the suggestion that it may at some point in some case be necessary. I definitely don't think the case mentioned here should be messed with by anybody.
baked ham
Lackshmana
Posted 8:26 PM 3/3/08
And after a sterling start, Drew hits his first controversy. Picturegate, wherein he used a microsoft/monopoly parody photo for an, at best, marginally related story.
We will keep you updated as the situation progresses, but this may actually help him in the Japanese primaries, then turn around and hurt him in the general election.
Stay tuned to KNN, home of the best post analysis team on cable internet.
Lackshmana
jetsmanfoley
Posted 8:26 PM 3/3/08
@baked ham: Fair enough. I think at some point, governments need to intervene for the benefit of its people. Is this one of those cases? Probably not. In any case, this isnt the forum for political or economic arguments. You are right that the consumers will see no immediate benefit to this.
jetsmanfoley
tnx3
Posted 8:26 PM 3/3/08
@Old-school Sonic fanboy: They are the actual manufacturers of the DS screen component. Nintendo doesn't actually make a lot of the individual parts of the things they sale. Best example would be the ATI (I think it's ATI) video chip found in a Wii system. Nintendo buys that part from them, buys a lot of other things as well, and assembles a completed product for sale.
tnx3
baked ham
Posted 8:26 PM 3/3/08
@jetsmanfoley: I'm familiar with the concept of oligopoly. I see no reason why governments should involve themselves in the regulation of markets. I'm sorry if you disagree, but that's how I see it.
baked ham
baked ham
Posted 8:26 PM 3/3/08
@boxofthegods: Yeah, what's your point? It's the free market that should determine these kinds of things, not the courts. If a bunch of companies got together and fixed prices, then the people will either pay it, and that will turn out to be a good decision for profitability on the part of the industry, or the people will not pay it, which will then show that the industry needs to either abandon their price fixing agreement or lower their prices to the point where the free market will again deem it a proper value for the product and money will again be spent in that area.
baked ham
jetsmanfoley
Posted 8:26 PM 3/3/08
@baked ham: Well if you make something you have the right to sell it at whatever price you want, but if you collude with other companies to sell at a high price, it creates the same sort of effect as a monopoly and customers get screwed.
I'd imagine that price fixing is pretty hard to prove. I doubt they have an email chain going back and forth between sales people at Hitachi and Sharp with any details.
jetsmanfoley
Sollus
Posted 8:26 PM 3/3/08
So if these screens finally become cheaper for nintendo do any of you honestly think that they will lower the price of the DS? Hell no.
Sollus
boxofthegods
Posted 8:26 PM 3/3/08
@baked ham:
What are you going on about this would be like if all the manufacturers of a certain product say mini hard drives got together and decided to sell them at the same price. Could you imagine how much more any of the portable music devices would cost if the manufactures of decided to work together for profit instead of competing like business are supposed to.
boxofthegods
okenny :)
Posted 8:26 PM 3/3/08
@Xephos: That's not hummer dummy... that's bitterness. If the story was about Microsoft, then it would be funny. The way it is right now, it sounds like an ex-girlfriend named Gwen who doesn't know when the fuck to stop bringing up mistakes that a person made regardless of how much that person has apologized! *breath* You see how sad that was? My point exactly ;)
okenny :)
Callidux
Posted 8:26 PM 3/3/08
@Xephos: Oh believe me, I enjoy a good Sony/Microsoft/Nintendo/random company bashing as much as the next. But I don't see how this has anything to do with Microsoft, and because it's a completely irrelevant picture I don't find any humor in it.
Callidux
Xephos
Posted 8:26 PM 3/3/08
@Callidux:
Chill, it's called HUMOR.
Xephos
Old-school Sonic fanboy
Posted 8:26 PM 3/3/08
So..what do they do? Replace DS screens or something?
Old-school Sonic fanboy
baked ham
Posted 8:26 PM 3/3/08
There's nothing wrong with Hitachi and Sharp charging whatever they want. If Nintendo pays it, then that's just fine. If they don't, then they have to lower their prices or lose that business. It's not any government or congress of caucus or court's place to interfere with this sort of thing.
And besides, if they enforce lower prices for Nintendo to pay, that won't make Nintendo lower their prices. It just means more profit for Nintendo. Why does Nintendo deserve that profit and not Hitachi & Sharp? Or will they then force Nintendo to lower the DS's price, as well?
This is all bullshit.
baked ham
Nimsim
Posted 8:26 PM 3/3/08
agreeing.
Nimsim
Barob
Posted 8:26 PM 3/3/08
Wow, way to make too much fuss over a picture, even though it works since it's a play on corporate monopolization and other shady dealings, such as price fixing.
Unfortunately from this whole thing, we as consumers won't see any change in price if found to be true. Nintendo will only make more profit.
Barob
Nimsim
Posted 8:26 PM 3/3/08
@cpmui99: Are you serious? No, monopoly and price fixing is not acceptable. We have competition for a reason. What they have been doing is illegal.
I very much doubt it that you would blatantly accept 2 companies agreeong on keeping their technology at a skyhigh price instead of competing.
Nimsim
7th_Ronin
Posted 8:26 PM 3/3/08
they does the same for lcd screens put in hdtvs for sure... they should investigate them further
7th_Ronin
Callidux
Posted 8:26 PM 3/3/08
@Manny: I agree, Microsoft has nothing to do at all with this story, as far as I can tell. That picture really should be changed.
Callidux
ShinobiFist(PSN-XBL)
Posted 8:26 PM 3/3/08
As long Nintendo is not part of this mess, is all good.
ShinobiFist(PSN-XBL)
cpmui99
Posted 8:26 PM 3/3/08
I really don't see what's wrong with that. Sure, it's a pretty jerk thing for them to do but it is their product. They're the ones making the damn things so why shouldn't they be able to charge what they want for it? No one has to buy a DS, Nintendo doesn't have to buy from one of those two companies. If they really were fixing prices, Nintendo could just say 'fuck you' and hire a different company.
cpmui99
Nimsim
Posted 8:26 PM 3/3/08
@CarbonatedWater: Maybe. Maybe.
Nimsim
CarbonatedWater
Posted 8:26 PM 3/3/08
@Nimsim: Maybe a Hitachi or Sharp booth babe would be better. Maybe with a thought bubble or something. Everyone wins.
CarbonatedWater
Manny
Posted 8:26 PM 3/3/08
I get the Microsoft/Monopoly connection but why is it relevant here?
Manny
justhesh
Posted 8:26 PM 3/3/08
Really, Drew? Really? A Microsoft allusion? Really?
Tsk tsk. Someone's going to bed with no pudding.
But you will get a story, because this is the only time I will ever be able to use the word "allusion".
justhesh
ErskinPig
Posted 8:26 PM 3/3/08
Hitachi and Sharp: You are NOT the Senate.
ErskinPig
AndrewMP
Posted 8:26 PM 3/3/08
You guys already posted this story, I beleive.
[kotaku.com]
AndrewMP
Nimsim
Posted 8:26 PM 3/3/08
Although it makes sense to put microsoft pic there. Shouldn't it have been something else? Maybe about hitachi, or sharp. Maybe.
Nimsim
Knight-Zero
Posted 8:26 PM 3/3/08
I would think that it would be logical for them to try and price gouge... "If I don't lower my prices, he won't lower his... we all win" - Evil CEO
Knight-Zero
Integral_Taken
Posted 8:26 PM 3/3/08
Thats no good
Integral_Taken
krunkjuice
Posted 5:28 AM 6/3/08
@Manny: I'd imagine because MS did this with OSs in the 90s.
krunkjuice
Leathersoup
Posted 5:28 AM 6/3/08
@Sollus: Agreed
Leathersoup