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Hon Hai Emerging as Exclusive Supplier of Nintendo's Wii 2

2011/05/04 | By Steve Chuang

Taipei, May 4, 2011 (CENS)--Hon Hai Precision Industry Co., the world's largest electronics manufacturer, has allegedly garnered Nintendo's contract order for Wii 2 as the customer's exclusive supplier of the next-generation TV game console, according to industry sources.

A Japanese news agency reported that Nintendo may debut Wii 2 at E3 Expo 2011, slated for June 7-9 in Las Vegas, and will start to promote the device worldwide in mid-October or early November.

Wii 2 is built with AMD's R700 GPU to feature a higher clock speed than Microsoft's Xbox 360 and Sony's Play Station 3, and has a touchscreen controller. The TV game console will retail for between US$350 and US$450 per unit to gain a better competitive basis on prices.

Market observers indicated that Nintendo, which sold only 13.72 million units of Wii from April through December, 2010 and hence has adjusted downward its Wii sales projection to only 16 million units for this year, expects to regain revenue growth momentum from launch of Wii 2.

With Hon Hai Precision to start delivery of Wii 2 in October, Hon Hai Group will become the first supplier who turns out the world's top three next-generation TV game consoles, namely Xbox360, PS3 and Wii 2G at a time.

Hon Hai Precision scored non-combined revenue of NT$214.899 billion in March, up 40.56% from a month earlier or 36.91% from a year earlier, with aggregate revenue for the first quarter amounting to NT$554.011 billion for a 33.57% growth from a year earlier.

Noteworthy is that launch of Nintendo's Wii 2 will also benefit other Taiwanese electronic companies, including Delta Electronics Inc. (power supplies), Macronix International Co. (ROM products), Advanced Semiconductor Engineering Inc. (semiconductor testing and packaging), etc.

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