From Nikkei:
From Bloomberg:
OSAKA (Nikkei)--Domestic orders for the Nintendo DS, a portable video game system to be released by Nintendo Co. (7974.TO) on Dec. 2, have reached 2 million, double the firm's initial plan, The Nihon Keizai Shimbun reported in its Friday morning edition.
The major manufacturer of home-use game machines and software began accepting orders for the DS at volume electronics retailers and convenience stores on Nov. 3.
To deal with the larger-than-expected demand, Nintendo plans to boost output quickly by outsourcing production to three sites in China, up from the current two. Although shipments by the end of the year will likely total slightly more than 1 million, the firm expects to fill the remaining orders at the start of next year.
Nintendo has revised up its worldwide sales projection for the DS for fiscal 2004 to 4 million units from 3.5 million.
With the DS, whose new features include two screens and touch input, the company aims to "expand the market by attracting customers who are not so familiar with" portable game machines, according to President Satoru Iwata.
Orders for the DS are substantially higher than those for Nintendo's current portable, the Game Boy Advance SP, which drew about 1.5 million orders in one month after its release.
For new game consoles, growth in sales immediately after their release is seen as the key barometer of future performance, including software sales. With the Sony Corp. (6758.TO) group's release of a portable gaming device in December expected to add to the competition, Nintendo plans to secure its competitive edge by further expanding orders.
From Bloomberg:
Nov. 12 (Bloomberg) -- Shares of Nintendo Co., the world's biggest maker of hand-held game consoles, surged as much as 4.5 percent after the game maker said advance demand for its newest player is outstripping the company's expectations.
Nintendo, based in Kyoto, Japan, has received 2 million orders at home for its DS game machine, double the company's target of 1 million domestic orders, spokesman Ken Toyoda said today in response to a Nikkei English News report.
Sales of hand-held hardware and software accounted for 62 percent of Nintendo's revenue in the business year ended March 31. The company is counting on the DS's two screens and voice recognition to counter a challenge from Sony Corp., which will release its own hand-held player on Dec. 12 in Japan with the ability to play music and movies in addition to video games.
Nintendo's shares were up 490 yen, or 4.1 percent, at 12,590 as of 11.17 a.m. in Osaka, which would be their biggest one-day gain since Sept. 30 when they rose 4.3 percent. The shares rose as much as 540 yen to 12,630 earlier in the day.
The DS goes on sale in the U.S. on Nov. 22 for $149.99 and in Japan Dec. 2 for about 15,000 yen ($140). Sony's PSP, also known as the PlayStation Portable, will reach stores in the U.S. before March 31, Sony has said.
Sony plans to ship 500,000 PSPs in Japan by the end of the year and 3 million worldwide by March 31, the company said Oct. 27 when they announced the PSP's price and the debut date.
Marketing Push
To meet demand for the DS, Nintendo will extend production to a third site in China, Toyoda said.
The maker of the Game Boy and Game Boy Advance players holds 95 percent of the market worldwide for hand-held video-game consoles. Nintendo also makes the GameCube home console, which competes with Microsoft Corp.'s Xbox and Sony's PlayStation 2.
Nintendo's marketing efforts for the DS include television commercials featuring best-selling female pop singer Utada Hikaru, as well as a five-city tour this month to show off the device and some of its functions such as the touch-sensitive screen.
The marketing blitz is designed by Nintendo to hold on to customers ahead of the debut of Sony's PSP PlayStation Portable, which will sell for 19,800 yen in Japan.