Gamestop Predicts Nintendo NX “Could be Huge”




/ 3 years ago

nintendo

It is now certain that Nintendo will launch its new console – currently codenamed the NX – in the first quarter of 2017, and Gamestop seems very excited about it. During an earnings call, Gamestop executives raved about the potential of the forthcoming hardware, and in a related tweet proclaimed that the NX “could be huge.” Of course, Gamestop doesn’t mean Xbox One huge – that’s one bulky console – but, rather, financially successful.

“Nintendo has confirmed that they will be introducing a new console in early 2017. So let’s take a look at the potential for just that one new console,” said Mike Hogan, EVP of Strategy and Business at Gamestop, said during the earnings call. “Development Once again, we are not projecting, we are simply looking at the potential for a new console in comparison to prior consoles.”

“Should the new NX perform only slightly better than the Wii U, it would still generate $2.7 billion of incremental sales over the first two years,” he added. “Should it perform at even half of the level of the Wii, it would generate $7.5 billion in incremental sales over that timeframe. You can of course apply GameStop’s average market share to estimate the impact on GameStop sales. While it is too early to offer definitive projections, we are monitoring this situation closely in terms of product availability and features, consumer awareness and purchase intent. We plan to provide an update each quarter”

The call also touched on rumours that the NX will eschew discs and move back to cartridge-based gaming which, given the advancements in flash memory over the last few years, could give Nintendo a massive advantage over the disc-based Xbox One and PlayStation 4. Should this speculation be true, Gamestop notes, it could also give them – and other game outlets – a financial boost, especially in the second-hand market.

“The only difference would be on the refurbishment and pre-owned side,” Gamestop’s President of International Mike Mauler said, regarding the cartridge rumour. “And actually, cartridges are much simpler to refurbish and repackage. So there is somewhat a little bit of an advantage if it went in that direction on used.”

“But it is early, guys, and we have got to all keep cool heads,” replied CEO Paul Raines, pleading for caution. “Certainly I would say that the fact that there are rumors of that type just confirms for you that this is an important console for next year. It will have physical media, we will play a role in it, our pre-owned business will also play a role. So we’re excited about that,” adding, “And of course we love Nintendo IP. So it’s all good news.”



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