GameStop Explore Nintendo NX’s Potential Sales Impact

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GameStop recently held a conference call to reflect on their first quarter earnings, at which executive vice president of strategic business and brand development Mike Hogan touched on their anticipation for Nintendo NX.

That saw the company compare Wii U and Wii’s sales performance over their first two years at retail, in an early attempt to explore the console’s potential sales impact. Reiterating that they weren’t projecting, that, if it performed slightly better than Wii U, could see Nintendo NX “generate $2.7 billion in incremental sales” in such time.

“Nintendo has confirmed that they will be introducing a new console in early 2017,” Hogan began. “So let’s take a look at the potential for just that one new console. Once again, we’re not projecting. We are simply looking at the potential for the new console in comparison to prior consoles.

“Should the new NX perform only slightly better than the Wii U, it would generate 2.7 billion dollars in incremental sales over the first two years. Should it perform at even half of the level of the Wii, it would generated 7.5 billion units of incremental sales over that time frame. You can of course apply GameStop’s market share to estimate the impact on GameStop’s sales.

“While it’s too early to offer definitive projections, we are monitoring the situation closely in terms of product availability and features, consumer awareness and purchase intent. We plan to provide updates this quarter.”

The conversation surrounding Nintendo NX continued in the Q&A, where they were asked about the rumour that had suggested it will use cartridges as storage media. While they are unclear whether that holds any truth, that the console will use physical media is seen as a positive.

“We saw these rumours, and, of course, we can’t comment on them. I don’t think we know anything about it anyway, but certainly for us physical media is a good thing.

“The only difference would be on the refurbishment and pre-owned side, and actually cartridges are much simpler to refurbish and repackage, so there’s a little bit of an advantage in that direction.

“But it’s early, and we keep a cool head. Certainly I would say that there are rumours of that type, just confirms 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, and of course we love Nintendo IP, so… it’s all good news.”

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