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N-64 blasts competition
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November 7, 1996: 8:07 p.m. ET
New 64-bit Nintendo unit sells out in much of United States
From Correspondent Fred Katayama
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NEW YORK (CNNfn) - In his new movie, "Jingle All The Way," Arnold Schwarzenegger plays a parent who'll do anything to get his kid the hottest toy for Christmas. (934K QuickTime movie)
In real life, parents this year are scrambling for the Nintendo 64, which is sold out in most stores nationwide.
 Nintendo's latest offering is a 64-bit system offering better graphics than Sony's and Sega's 32-bit systems, while carrying the same price tag as those competitors.
Nintendo used to be the king of the $15 billion video-game market, but now places second to Sony in the United States.
This week, Nintendo reported that first-half profits plunged 53 percent to $263 million.
But the Japanese electronics firm's new 64-bit weapon, introduced in September, could help Nintendo fight its way back.
Already, Nintendo has raced past the competition in September sales, winning a 63 percent market share.
Analyst Gary Jacobson of Jefferies & Co. is impressed. (123K WAV) or (123K AIFF)
Still, Nintendo faces tough obstacles.
Currently, the firm only offers three software game packages for the 64-bit  system.
Nintendo plans to put out five more titles by Christmas, but may have to roll out more games quickly if the company hopes to keep the momentum going.
By contrast, Sony and Sega's 32-bit systems already have more than 150 titles available in the United States.
Sony is also taking the offensive on Nintendo, cutting production costs and planning to soon reduce retail prices.
At the same time, Nintendo runs the risk of becoming a victim of its own success, losing potential sales because of N-64 shortages.
Nintendo said it will double N-64 shipments to the United States this year, but predicts the effort will still fall short of demand.
That could hurt Nintendo's market share.
"A lot of the people that want (the N-64) right now are opting for (competitor's products)," said Dave Rother of toy giant Toys R Us.
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