Nintendo Says DS Player Demand Beating Expectations (Update2)
Nov. 12 (Bloomberg) -- Nintendo Co., the world's biggest maker of hand-held game consoles, said advance demand for its newest player is outstripping the company's expectations.
Nintendo, based in Kyoto, Japan, has received 2 million advance orders at home for its DS portable 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.
The shares of Nintendo rose 410 yen, or 3.4 percent, to 12,500 yen as of 9:15 a.m. in Osaka. The shares are poised to post their biggest one-day gain since Sept. 30.
Sales of portable hardware and software accounted for 62 percent of Nintendo's revenue in the business year ended March 31. 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 Corp.'s PlayStation 2.
The DS goes on sale in the U.S. on Nov. 22 for $149.99 and in Japan on Dec. 2 for about 15,000 yen ($140).
Marketing Push
To meet demand for the DS, which features two screens and voice recognition capabilities, Nintendo will extend production to a third site in China, Toyoda said.
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.
In the U.S., Nintendo's biggest market, the company has started television teasers aimed at teenagers and gamers in their twenties with the caption ``Touching is Good.''
``Gamers in that demographic are generally the most tech savvy and the most willing to try out new products,'' said Beth Llewelyn, a spokeswoman at Redmond, Washington-based Nintendo of America Inc.
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.
The PSP, which will also play music and videos, reaches stores in Japan on Dec. 12 and in the U.S. before March 31, Sony has said.