Media, Entertainment and Gaming
Nintendo has decided to stop repairing the Famicom because stocks of spare parts are running out, according to a company spokesperson. Famicom is the console that became famous with Super Mario Brothers and Dragon Quest. The family computer, which was sold as the Nintendo Entertainment System in the US and Europe, made its world debut in Japan in 1983 and went on to sell some 62 million units worldwide. The decision to stop providing repair services for the Famicom is seen by industry observers as bringing about the end of the product.
Sony CorpÆs Sony Pictures Entertainment division is looking into the possibility of selling or forging equity partnerships for half of its animation studio and an even larger portion of its digital-effects company. Sources estimate that the outright sale of the animation studio and the digital-effects company could bring in around $500 million. According to other media sources, Sony Pictures has asked investment bank Houlihan Lokey Howard & Zukin to assess the value of the two divisions.
Mobile/Wireless
Casio Computer Co. Ltd has announced plans to launch W-CDMA cell phones in Japan during the six months from October 2008 to March 2009. Casio currently makes CDMA-based phones, which it supplies to JapanÆs KDDI Corp, Verizon Wireless in the US and South Korea's LG Telecom. KDDI has CDMA-based networks, while NTT DoCoMo Inc and Softbank Corp both offer cell phone services based on W-CDMA technology. Casio posted a 40.8% decline in its operating profit to
Ñ13.7 billion ($119.6 million) in April-September from a year earlier. The company said it projects an operating profit of Ñ37.2 billion ($324.2 million) in the current business year.
IP Mobile Inc has given back its mobile broadband license and filed for bankruptcy, according to industry sources. The move is seen by industry observers as the termination of what was supposed to be a new data-based telecom venture. Sources estimated IP's debt at about Ñ900 million ($7.8 million). The company was given a license in 2005 on the condition that it would launch the service within two years. During this period Mori Trust Co came in as IPÆs largest shareholder in a bid to give the company creditworthiness, but the firm continued to show instability. Its efforts to generate fresh funding from new sponsors also failed.
Hardware
Kyocera Corp, Japan's largest electronics component maker, reported a 7.4% rise in its operating profit to Ñ67.8 billion ($591 million) in the first half to September compared to an operating profit of Ñ63.3 billion ($552 million) a year earlier. Revenue climbed 3.4% to Ñ636.5 billion ($5.5 billion), which the company attributed to the profitability of its cellular phone business at home. However, it's net profit declined 5.4% to Ñ50.6 billion ($441 million).
Ventures/Investments
Citigroup Inc has signed an agreement to acquire all of Nikko Cordial Corp, Japan's third-largest brokerage, paying about $4.6 billion for the 32% it does not already own. Earlier this year, Citigroup, invested about $8 billion to acquire 60% of Nikko. Nikko Cordial is Japan's third largest brokerage and owns more than a quarter of online brokerage Monex Beans. One of the consolidated subsidiaries of Nikko Cordial is Nikko Beans, Inc, which also specialises in online brokerage services.
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