Sharp, Hitachi investigated for fixing price of Nintendo DS screens

Sharp and Hitachi said Thursday that their LCD display businesses were probed to look for evidence of price fixing in portable game console displays.

Under Japanese law, if a company is found guilty of the scheme, up to 10 percent of its profit gains obtained under those policies could be forfeited in fines. What is not yet known is how the investigation started.

The LCDs involved are included in the Nintendo DS gaming system, although the game maker would not immediately comment. Neither Sharp nor Hitachi would provide any further details other than to confirm they were under investigation.

Kyodo News says that the offices and plants of both companies were searched on Thursday. Sharp and Hitachi are the only suppliers of LCD displays to Nintendo, the company confirmed.

Sharp has been working with Nintendo since 2004 on LCDs, with Hitachi coming on board the following year. Price fixing was said to have begun at that time.

The Nintendo DS has become one of the the most popular game consoles ever released, with the Japanese company selling some 65 million units worldwide.