On Thursday, the two manufacturers of the Nintendo DS’ touch screen, Sharp Corp. and Hitachi Ltd., were raided by Japan’s Fair Trade Commission on suspicion of price-fixing.  The two firms are suspected of rigging prices for the LCD screens for Nintendo’s ultra-popular handheld system.  A Sharp spokesman stated "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,"  

Originally, Sharp was the only producer of the screens, but increased demand for the handheld systems necessitated a second manufacturer, and Hitachi was brought on board.  Now, the two companies are being investigated for collusion to fix prices, and it isn’t the first time, either.  

At this time, Nintendo is merely caught in the middle, and is not being accused of any wrongdoing whatsoever.  If the investigation reveals evidence of price-fixing, there’s a good chance that the price of screens will go down, lowering Nintendo’s cost to produce the DS.  Of course, the possibility of those savings being passed on to you and me are slimmer than the DS itself.



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