Nintendo’s anticipated successor to the Wii U console, codenamed “NX,” is said to release by the year end, according to Nomura Securities. The weight of the announcement has driven Nintendo’s stock down by 5% yesterday.
Nomura Securities, a leading securities and investment company based in Tokyo, believes that the NX will “cannibalize” the sales of Nintendo’s current handheld and console offerings, the 3DS and Wii U. According to the banking company, Nintendo will also reveal full details regrading the new console.
Nomura has changed its position on the stance of Nintendo’s new hardware:
“We had previously thought that the NX launch would have only a limited impact on 3DS and Wii U sales as it is not being positioned as a successor to either console, but we have now altered our view because 3DS sales have been weakening a little recently, particularly in terms of software, as the machine enters its sixth year, and to factor in a harsher competitive climate and what happened to other existing consoles when new machines were launched in the past.”
To address the cannibalization of Wii U and 3DS sales, Nomura explains, “We have lowered our estimates for current consoles to reflect the present situation, fiercer competition, and what has happened in the past when new hardware is announced.”
Though not a confirmation of launch plans for the Nintendo NX, this is just another piece of news that points to a 2016 release for the hardware.
Source: Barron’s Asia