The Big N admit they maytake early profit cuts with new hardware device.

Just as soon as the ecstasy surrounding the DS starts to die down, along comes the bad news for Nintendo. Sort of.

Nintendo world president, Satoru Iwata, has admitted that there may be two problems initially with the Nintendo DS at launch.

According to Mr Iwata, when speaking to Reuters, the dual screen system was presenting quite the "Challenge" to LCD screen manufacturer Sharp. So much so that it may well mean that supplies of the new hardware are limited at launch. Uh-oh.

The second potential problem, caused by the above difficulty in manufacture, is the initial cost of the machine. The short supply of LCD screens pushes up manufacturing costs, meaning that sales at the start may make less of a profit than expected.

However, we'd be quick to point out that this doesn't necessarily mean that Nintendo will be taking losses on the hardware; that just isn't Nintendo's style at all. It does mean that in the short term the DS will be quite a costly piece of kit for Nintendo. But we doubt very much that they will pass that cost on to the average consumer. Again, that just isn't like Nintendo.