Joining a growing camp of Japanese companies, Nintendo is seeking cheaper labour and operations costs. Nintendo said the costs of production and distribution per unit are currently higher than the machine's sales price, and the firm aims to bring the business into the black quickly.

This does not mean Nintendo is not making any profit, because Imanishi said the firm could generate profits if it reached its target of selling four million GameCubes and 10 million game software titles by the end of March.

A while ago we reported the rumour that Nintendo was planning to increase it's production to 1 millions units a month. The rumour also included the information that they would do that by setting up a factory in China. Has our rumour been confirmed?