GameStop Compares Potential Nintendo NX Sales to Wii U and Wii; “Excited” About it

GameStop Compares Potential Nintendo NX Sales to Wii U and Wii; “Excited” About it

During GameStop’s quarterly financial conference call Executive Vice President of Business Strategy Mike Hogan talked about what kind of sales the upcoming Nintendo NX could generate in its first two years in comparison to its predecessors, the Wii U and Wii.

“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. 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 generate 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.”

Below you can check out the slide included in the presentation, identify as 120% the “slightly better” performance compared to the Wii U the NX would have to achieve in order to generate $2.7 billion in sales.

AcroRd32 5/26/2016 , 11:38:38 PM 1Q16_Earnings.pdf - Adobe Acrobat Reader DC

During the following Q&A, the company’s executives also commented on the rumor alleging that the NX could launch with cartridge media instead of disks. Apparently, they seem to be fairly confident at least on the possibility of it coming with physical media.

 “We saw these rumors, and of course we can’t comment on them. I don’t think we know anything about it anyway [about whether it’ll be disk or cartridge-based], but certainly for us physical media is a good thing.”

“The only difference would be on the refurbishment and pre-owned side, and actually cartdriges 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 rumors 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.”

It’ll certainly be interesting to see what kind of market performance will see for the NX, and what kind of media it’ll launch with. Personally, I have a fiery dislike for cartridges, but we’ll see.