Both Sony and Nintendo announced new portable consoles last week during E3, and while the market for game handhelds is hotter than ever as proven by Nintendo's own Gameboy, essential parts for making the handhelds like LCDs are going through a serious shortage which could hurt profit and sales of the upcoming consoles.

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