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'Pachter Factor' Talks NX's Potential Success

'Pachter Factor' Talks NX's Potential Success

Michael Pachter appears on Games every week to answer questions about the gaming sector. In this week's episode, Pachter talked about Nintendo Co., Ltd (ADR) (OTC: NTDOY)'s Wii U and NX launch.

Nintendo's NX Release

Nintendo has set a dismal forecast of 800,000 Wii Us to be sold in 2016, hinting at a certain discontinuation of the console. It is the "worst selling console since the 1990s," with a mere 13 million installed base users, Pachter noted.

The launch in March 2017 is a "very good window" for Nintendo Pachter said. It gives Nintendo a flexible launch date. Most companies release consoles around November to capture the holiday rush. With Nintendo's spring release date, there is no rush in developing the NX; even with a delay of three or four months, profits can still be maximized.

Related Link: Pachter Factor Talks Nintendo, Virtual Reality And Gaming Stocks

NX's Potential Success

Nintendo's revenue guidance doesn't include any "big number for new hardware such as the NX," Pachter stated. In Pachter's opinion, it seems if details about the NX aren't released to the public by October, we should be looking at a release date next April or May.

In an article by Teachradar, Pachter is quoted saying that the NX is a "backward looking technology" and that it "is just not an improvement over everything else that we've (consumers) got an option to do" and "based on Nintendo's recent history, it is not going to be very good."

Nintendo's Executive Perspective

A more positive view was found in the same Techradar article. President Tatsumi Kmishima said, "As far as the NX goes [...] we're not building the next version of Wii or Wii U. It's something unique and different. It's something where we have to move away from those platforms in order to make it something will appeal to our consumer base." Kmishima seems to be alluding to developing a console that will appeal to die-hard Nintendo fans and attract Xbox and PS4 users as well.

Posted-In: Michael Pachter NX Pachter FactorLong Ideas Tech Media Trading Ideas General Best of Benzinga


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