Nintendo’s NX: Making Sense Of The Nonsensical

<p>Last week saw a barrage of Nintendo NX rumours&period; Much of it was intriguing and the rest was&comma; well&comma; likely folly pouring from the mouths of hungry fans and supposed insiders&period; Nintendo has been awfully quiet about announcing any concrete news&comma; and in the year that they undoubtedly have to break the silence with a storm&comma; we eagerly pick at any crumb of news that falls our way&&num;8211&semi;even the rumours&period; But what can be learned from the recent whispers in the halls&quest; Is it all just typical fanboy excitement&comma; or is there some truth to it all&quest;<&sol;p>&NewLine;<p>As much as I am a longtime fan of Nintendo&comma; I&&num;8217&semi;d like to cut through all the reverberating voices and explain which parts of the rumours matter&comma; which don&&num;8217&semi;t&comma; and what it all means for Nintendo in 2016 and beyond&period;<&sol;p>&NewLine;<p>Let&&num;8217&semi;s begin with the prepared financial analysis provided by David Gibson&comma; the head of Research at Macquarie Capital Securities&period; The <a href&equals;"http&colon;&sol;&sol;i&period;imgur&period;com&sol;r9vRQTg&period;png" target&equals;"&lowbar;blank" rel&equals;"noopener noreferrer">report<&sol;a> includes information regarding the NX&&num;8217&semi;s compatibility with other devices&comma; separation into two pieces of hardware&comma; and launch date and price&period; The compatibility options&comma; one of them being the PlayStation 4&comma; is what is causing quite a stir amongst gamers&period; The report includes information that indicates that Nintendo&&num;8217&semi;s next generation of hardware will somehow operate with the PS4 in some capacity&period; This is simply not true&period;<&sol;p>&NewLine;<p>While Macquarie&&num;8217&semi;s report presents some interesting conjecture about Nintendo&&num;8217&semi;s future plans&comma; that is all it is&&num;8211&semi;just conjecture&period; The purpose of the report is to summarize Nintendo&&num;8217&semi;s financials and make a potential case for choosing to invest in the corporation&period; The section that deals with the NX&&num;8217&semi;s compatibility clearly states that &&num;8220&semi;it&&num;8217&semi;s possible the NX works with PS4 or PC&&num;8217&semi;s which would be a major change for Nintendo and be a positive&period;&&num;8221&semi; Notice how the sentence is phrased&semi; it is a thought&comma; not a fact&period; And clearly the analyst is not claiming that to have a complete and comprehensive grasp of Nintendo&&num;8217&semi;s intentions&period;<&sol;p>&NewLine;<figure id&equals;"attachment&lowbar;98551" aria-describedby&equals;"caption-attachment-98551" style&equals;"width&colon; 231px" class&equals;"wp-caption aligncenter"><a href&equals;"https&colon;&sol;&sol;cdn&period;bagogames&period;com&sol;wp-content&sol;uploads&sol;2016&sol;01&sol;04012606&sol;NXpatent&period;png"><img class&equals;"wp-image-98551 size-medium" src&equals;"https&colon;&sol;&sol;cdn&period;bagogames&period;com&sol;wp-content&sol;uploads&sol;2016&sol;01&sol;04012606&sol;NXpatent&period;png" alt&equals;"NXpatent" width&equals;"231" height&equals;"300" &sol;><&sol;a><figcaption id&equals;"caption-attachment-98551" class&equals;"wp-caption-text">What could the supplemental computing device be&quest; Likely not a PS4&period; &lpar;US Patent &amp&semi; Trademark Office&comma; Click To Enlarge&rpar;<&sol;figcaption><&sol;figure>&NewLine;<p>Moreover&comma; the report states that &&num;8220&semi;patent filings&&num;8221&semi; were the basis for the belief that the NX might be compatible with smartphones&comma; PCs&comma; and the PS4&period; To weigh in on this matter myself&comma; the NX will most certainly include cross-platform functionality with mobile devices and PCs&&num;8211&semi;Nintendo themselves admitted to that months ago&period; The My Nintendo membership program announced by Nintendo President Tatsumi Kimishima will allow players to access things like friends lists and loyalty accounts across Nintendo hardware and mobile devices&period; Even more&comma; a service called Nintendo Account will enable game data to be saved via the cloud and accessed on&comma; you guessed it&comma; smartphones&comma; Nintendo devices&comma; and PCs&period; Not much of a rumour here&comma; so let&&num;8217&semi;s move on&period;<&sol;p>&NewLine;<p>The next bit of information from Macquarie&&num;8217&semi;s report presents interesting information regarding the release of the NX&period; It suggests that the NX is a platform comprised of two pieces of hardware&comma; one a handheld device and the other a home console&period; In past rumours&comma; it was said that the NX would be a console-handheld hybrid of sorts&comma; similar to the Wii U and its GamePad&&num;8211&semi;the difference being that the handheld for the NX can work without being in the vicinity of the home console&period; The fact that this report suggests two separate devices&comma; one releasing in November and the other in 2017&comma; catches my attention&period;<&sol;p>&NewLine;<p>Nintendo has done something similar in the past when marketing the Game Boy Advance&comma; the GameCube&comma; and the Nintendo DS&period; They called it the &&num;8220&semi;three pillar strategy&period;&&num;8221&semi; Previous and current consoles included some connectivity between Nintendo&&num;8217&semi;s home consoles and handheld devices&period; For example&comma; the Wii could send game demos to a Nintendo DS&period; Today&comma; <em>Super Smash Bros&period; Wii U<&sol;em> can be controlled using a Nintendo 3DS&period; These abilities give us a glimmer&&num;8211&semi;a foreshadowing of sorts&&num;8211&semi;of Nintendo&&num;8217&semi;s future&period; These rudimentary symbiotic relationships may evolve to far more advanced and interesting ways the NX will pair with its handheld counterpart&period;<&sol;p>&NewLine;<figure id&equals;"attachment&lowbar;98550" aria-describedby&equals;"caption-attachment-98550" style&equals;"width&colon; 167px" class&equals;"wp-caption aligncenter"><img class&equals;"wp-image-98550 size-medium" src&equals;"https&colon;&sol;&sol;cdn&period;bagogames&period;com&sol;wp-content&sol;uploads&sol;2016&sol;01&sol;04012623&sol;Nintendo-Pillar&period;jpg" alt&equals;"Nintendo's next pillar &lpar;Nintendo&rpar;&period;" width&equals;"167" height&equals;"300" &sol;><figcaption id&equals;"caption-attachment-98550" class&equals;"wp-caption-text">Nintendo&&num;8217&semi;s next pillar &lpar;Nintendo&rpar;<&sol;figcaption><&sol;figure>&NewLine;<p>The separation of the two devices also creates an environment where one could argue that the abilities of the handheld are no longer tied to the console release&period; Before&comma; it was possible to think of the NX handheld as being a component of or an addition to complement the home console&period; Now&comma; if we believe there is some truth to Macquarie&&num;8217&semi;s research&comma; the handheld device is to stand on its own as a full-fledged gaming device&period; At the suggested &dollar;200 price point&comma; the NX handheld is no longer a must-have with the console&semi; it is a stand-alone product&period; I like this scenario better than a console-handheld bundle&period; The amount of tech in the box would likely cost several hundreds of dollars&comma; and to try to keep costs at a minimum&comma; certain aspects of the console or handheld would have to be held back&period;<&sol;p>&NewLine;<p>This concept also allows for diverse handheld and console opportunities&period; Certain games just play better on handhelds&comma; while more complex and highly technical games are best experienced on consoles&period; Both devices can be viable purchases on their own&comma; but when combined&comma; provide useful functions and a well-rounded experience of the NX platform&period;<&sol;p>&NewLine;<p>Though the suggestion that the handheld will release separately from the console is a topic that I could indulge in for hours&comma; it is worth noting that the release schedule of each device is at odds with what piece of hardware actually requires an immediate successor&period; The sales of the 3DS are nowhere near that of the original DS&comma; but they are certainly strong when considering the harsh reality that Apple has forged in the mobile gaming space&period; The Wii U on the other hand has been failing for years&comma; so it would be in Nintendo&&num;8217&semi;s best interest to launch the NX home console as soon as possible&&num;8211&semi;at least sooner than the handheld&period;<&sol;p>&NewLine;<hr &sol;>&NewLine;<p>&nbsp&semi;<&sol;p>&NewLine;<p>Whether or not the console offering of the NX releases first&comma; the second source of rumours&comma; a leaked survey from Nintendo&&num;8217&semi;s client GFK&comma; keeps us busy with a bunch of interesting hardware specs and abilities&period; Like the rumours coming from Macquarie Capital Services&comma; we can merely speculate on the information presented&period; In this case&comma; much of the information is far less concrete because it comes via a survey&period; At the very least&comma; the last source was from a head analyst speculating based on past Nintendo patents and industry trends&period; GFK&comma; which provides market and consumer information&comma; simply leaked a survey that was perhaps intended to be a litmus test to gauge interest and confirm how certain parties would receive NX hardware specifications&period; Nonetheless&comma; let&&num;8217&semi;s explore some of the questions and details offered by the survey&comma; in case they partially reflect where Nintendo is headed with the NX&period;<&sol;p>&NewLine;<p>One portion of the <a href&equals;"http&colon;&sol;&sol;i&period;imgur&period;com&sol;zBmFP2S&period;jpg" target&equals;"&lowbar;blank" rel&equals;"noopener noreferrer">survey<&sol;a> defines terms like optical disc drive&comma; backwards compatibility&comma; and subscription gaming services&period; What can we glean from this&quest; First of all&comma; a definitions sections such as this one suggests that the folks participating in the survey are likely non-gamers&period; Maybe the survey is targeted at potential investors&period; Gaming audiences would already know what said definitions mean&comma; and probably wouldn&&num;8217&semi;t require much&comma; if any&comma; clarification&period;<&sol;p>&NewLine;<p>The second takeaway is that these definitions don&&num;8217&semi;t necessarily confirm Nintendo&&num;8217&semi;s plans&period; Just because the survey alludes to a <a href&equals;"https&colon;&sol;&sol;pbs&period;twimg&period;com&sol;media&sol;CZLsRqmUMAAA4Rd&period;jpg" target&equals;"&lowbar;blank" rel&equals;"noopener noreferrer">subscription service<&sol;a> like Netflix that would allows gamers to pay a fee to access games from a defined library of titles&comma; doesn&&num;8217&semi;t mean that such a feature will actually be included&period; But it is interesting to investigate a little&period;<&sol;p>&NewLine;<p>The mention of an optical disc drive is a perfect example of the survey pointing towards potential final features included with the NX hardware&&num;8211&semi;or&comma; in this case&comma; their exclusion&period; Past patents have pointed towards a disc-less piece of hardware&period; This seems to agree with a <a href&equals;"https&colon;&sol;&sol;pbs&period;twimg&period;com&sol;media&sol;CZLsn5sUMAArCOc&period;jpg" target&equals;"&lowbar;blank" rel&equals;"noopener noreferrer">later section of the survey<&sol;a> that tabulates the NX console&&num;8217&semi;s supposed technical specifications&period; The optical disc drive is clearly identified as not being included with the console&period; Even more&comma; a subscription-based gaming service would confirm that Nintendo is confident in a digital distribution future&period;<&sol;p>&NewLine;<figure id&equals;"attachment&lowbar;98549" aria-describedby&equals;"caption-attachment-98549" style&equals;"width&colon; 800px" class&equals;"wp-caption aligncenter"><img class&equals;"wp-image-98549 size-full" src&equals;"https&colon;&sol;&sol;cdn&period;bagogames&period;com&sol;wp-content&sol;uploads&sol;2016&sol;01&sol;04012638&sol;Nintendo-Discs&period;jpg" alt&equals;"Nintendo Discs" width&equals;"800" height&equals;"468" &sol;><figcaption id&equals;"caption-attachment-98549" class&equals;"wp-caption-text">Small disc&comma; big disc&comma; no disc &lpar;Nintendo&rpar;<&sol;figcaption><&sol;figure>&NewLine;<p>Don&&num;8217&semi;t be fooled&&num;8211&semi;much of the tabulated information seems unreasonable&period; The side-by-side comparison of specifications between the Wii U console&comma; the NX&comma; and the PS4 includes many inconsistencies&comma; several of them obvious&period; For example&comma; the Wii U specs claim that the console is only backwards compatible by means of digital downloads&comma; however the Wii U does play disc-based Wii games&period; Further&comma; the table speaks of a subscription service required to play Wii U games online&comma; when no such fee exists&period;<&sol;p>&NewLine;<p>So what does this all mean&quest; It means that while much of the information from the survey could highlight potential features of the NX console or handheld&comma; it may also be completely missing the mark&period; After all&comma; we don&&num;8217&semi;t know who actually issued the survey&semi; it may have been a  third-party rather than Nintendo themselves&period;<&sol;p>&NewLine;<p>Though it is fun to imagine a scenario where Nintendo does include some kind of achievement system to the NX family&comma; and equally fun to bash Nintendo for releasing a device only capable of outputting games at 900p&comma; we have to realize that we only have a sparse selection of confirmed information when discussing the NX&period; Nintendo needs to silence all this conjecture&comma; and the best means to do it is to hold a Nintendo Direct very soon&period; If the NX&comma; or a component of it&comma; is to be released in 2016&comma; I hope Nintendo are prepared to clarify this mess before the end of the first quarter&period; For the time being&comma; we can continue to imagine what their next hardware contributions will offer&period; You can sleep well knowing that Nintendo&&num;8217&semi;s NX will work with the PS4&comma; wont&&num;8217&semi;t be compatible with an external hard drive&comma; will play cartridge-based games&comma; and hopefully print money&period;<&sol;p>&NewLine;

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