UPDATE 1-Nintendo says sold 500,000 DS handheld in Japan
Mon Dec 6, 2004 07:40 PM ET
(Updates with company confirmation)
TOKYO, Dec 7 (Reuters) - Nintendo Co. Ltd. (7974.OS: Quote, Profile, Research) has sold more than half a million of its DS handheld video game devices in Japan since its launch last week, bringing global sales to above one million units, the company said on Tuesday.
Nintendo began selling the DS in Japan on Thursday, kicking off what is expected to be a fierce fight for control of the handheld game market with rival Sony Corp. (6758.T: Quote, Profile, Research) , which will launch the Playstation Portable in Japan on Dec. 12.
The DS, about the size of a paperback book and with two screens, one of which is touch-sensitive, scored sales of over 500,000 units in its first week on the market in the United States, where it was launched on Nov. 21.
Nintendo said it has already sold about 81 percent of the 570,000 units shipped domestically, or roughly 460,000 units. Consumers have reserved but not yet picked up another 50,000 of the devices, producing a combined total of 510,000 units.
"This is a very good start," said Nintendo spokesman Ken Toyoda, adding it was normal for some of the shipped units to remain unsold at this stage.
"Retailers know if they run out of product that customers won't come. Some stores are keeping stock so that they will have enough for the weekend."
Nintendo has been building interest in the DS over the past several weeks in an unprecedented campaign with television and outdoor advertisements featuring pop singer Hikaru Utada, as well as booths at which passers-by could try out the machine.
The company has said it expects to ship about one million devices each in both Japan and the United States by the end of 2004 and finish the business year ending March 2005 with total global shipments of about five million.
Nintendo is aiming the DS at users with higher disposable income and more interest in complex games, compared with the young children who have made its Game Boy line a global success. The DS sells in Japan for 15,000 yen ($146) apiece.
But Nintendo faces a formidable competitor when Sony launches its PlayStation Portable (PSP) machine in Japan on Dec. 12 at 19,800 yen. Sony is vying for a cut of the handheld game market, which Nintendo now dominates.
Sony is aiming to ship 500,000 PSP devices in Japan by the end of 2004 and 3 million units worldwide by March 31. The PSP will play music and movies, in addition to games.