Parts Snafu Threatens Nintendo, Sony Profits

Sony and Nintendo, gearing up to launch hotly anticipated hand-held gaming devices, face a shortage of key parts, which could crimp profits and sales of the rival products when they hit stores this year.

Nintendo Co.’s dual-screen hand-held, DS, and Sony Corp.’s PlayStation Portable come with all the bells and whistles of a modern game machine, which is good news for gamers but potentially bad for the two companies.

Surging demand for mobile phones and digital cameras has created a shortage of small liquid crystal displays. That spells trouble for Nintendo and Sony since the DS offers two, 3-inch screens and the PSP promises a 4.3-inch monitor.