Report: Wii profits trickling down to component makers

[brockly]

Already building sand castles from gold coins accrued via its ubiquitously popular Nintendo DS, Nintendo recently revised its full-year fiscal projections to reflect revenues of more than $11 billion and net profits of $2 billion. That's thanks in large part due to the rapt reception of its Wii console, which is lining more pockets than just those in the Kyoto-based game giant's boardroom. According to a report in UK industry trade site Tech.co.uk, the windfall of earnings extends to Wii component manufactures in the US and Europe as well.


Referencing specifically the technology behind the Wii's innovative motion-sensing capabilities, Tech.co.uk reports that Analog Devices, the US firm that manufactures the Wii Remote's acceleration sensor, and STMicroelectronics, an Italian-French company that produces the Nunchuk's corresponding sensor, have both experienced substantial growth since the Wii's launch in 2006. To keep up with demand, Analog Devices reportedly converted one of its facilities to focus exclusively on the Wii Remote's sensor, while STMicroelectronics is currently building a sensor production line in Italy.

The report also notes the impact on other industries as a result of the demand for acceleration sensors created by Nintendo's console. Tech.co.uk notes that global sales for the technology have tripled in the past year, and this has resulted in falling prices and broadening of devices the technology is felt in. Further, Nintendo's console is spurring the power chip and Wi-Fi component industries as well. Citing Japanese newspaper Nikkei, Tech states that Mitsumi Electric, which supplies Nintendo with its power chips and Wi-Fi components, increased its net profits by fivefold in its most recent reportings. Unfortunately, no specific earnings figures were available.