Nintendo Faces EU Antitrust Fine Next Week

Discussion in 'Current Events' started by medea, Oct 25, 2002.

  1. macrumors 68030


    Aug 4, 2002
    Madison, Wi

    BRUSSELS/LONDON (Reuters) - European antitrust regulators next week will fine Japanese video game maker Nintendo and a number of its distributors for sales practices it employed in the mid-1990s, EU Commission sources told Reuters.

    Nintendo 7974.T 7974.OS , maker of the popular handheld video game console Game Boy, plus the Donkey Kong and Pokemon video games, was accused in 2000 of collaborating with distributors to limit cross-border flow of its products in an effort to hike wholesale prices.

    The EU is expected to take up the matter next week, slapping the world's No. 2 video game maker with a fine. The Nintendo settlement is on the commission agenda for Wednesday, EU sources said.

    "A formal decision has not yet been received from the European Commission. However, we are aware that a decision is imminent," a Nintendo spokesman in London said.

    The size of the fine could not be confirmed.

    In 2000, the European Commission said it believed Nintendo and seven of its distributors participated in a "cartel-like" arrangement with the aim of partitioning the market and inflating wholesale prices for its consoles and games.

    Nintendo has cooperated with the EU from the outset of the investigation, which dates back to 1995. Nintendo no longer operates its European retail channel in this manner.

    Shares in Nintendo, which earlier this month cut its hardware shipment forecast for 2002/03, have been in a tailspin, down 19 percent this month. It closed up 2.6 percent on Friday at 11,350 yen in Tokyo. Demand for Nintendo's premier product, the GameCube, has tailed off lately in the crucial Japanese and German markets. Still, the company expects to ship three million GameCubes to European resellers by year-end.
    GameCube is battling with Sony's 6758.T market-dominant PlayStation 2 and Microsoft's MSFT.O Xbox for share in the brutally competitive video games console market.
  2. macrumors 68020


    Feb 5, 2002
    All up in your bidness
    I hope that with Nintendo's screw-the-consumer attitude, they get what's coming to them. I haven't forgotten the days of $69 SNES games. Or $69 N64 games for that matter. Or the $20 RF & AC adapters, or the $30 controllers, or the deliberately-controlled N64 console shortages leading up to the 1996 holiday season.

    I haven't even forgotten the way that none of the peripherals you buy for a given Nintendo system are compatible with any other systems. (Moving from the Game Boy to the Game Boy Pocket? Gotta buy a new AC adapter! It's the same output voltage, but we just decided that we wanted to screw you. Oh, and you'll have to buy a new multiplayer cable too! Works the same, but has different connectors so that it's incompatible with the original Game Boy! Suck it!"

    Other companies have been bad at stuff like this as well, but Nintendo has always been by far the worst.
  3. macrumors 68020


    Dec 3, 2001
    Also don't forget how they've screwed over most of the emulation scene by forcing them to shut most of the rom sites down.


    I still want a gameboy advance though :D

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