LCD shortage could cost PSP market

Top console companies Nintendo and Sony will soon be struggling for handheld gaming share with there competing products, the Nintendo DS and the Sony PSP. But what the companies did not bank on was shortage of LCD displays when they designed the 2 screen layout of the DS and the high-resolution PSP display.

Due to the massive boom in mobile phone displays in both multi-screen and high-resolution screen format, LCD manufacturers are feeling the strain, and forecasters expect to see significant shortages when the two companies release their handheld gaming devices next year.

With the foreseen struggle in mind, the two companies are bracing themselves for what could be a significant hit to their hardware sales profits.

Nintendo president went on record with the following understatement:

"When we started thinking about a product with two screens, we didn't expect LCD supply to be so tight. In that respect, this isn't going according to plan,"

Sony countered with the following:

"If you just add up the components, day one there's probably not too much margin on the hardware, But when all is said and done, we are in the business to make money on the hardware and we have proven that with the PlayStation and the PS2."

Nintendo acknowledging the issue, where Sony are blindly confident. Perhaps Sony have a card up their sleeve they have not played yet, or have already planned for this sort of eventuality. Time will tell.

Leave a Reply