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GameStop Comments On Nintendo NX Sales & Cartridge Rumors

May 27, 2016 by Dennis Patrick

GameStop could benefit from cartridge based video games.

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

We’ve all heard the various rumors for the Nintendo NX and it’s simply exciting. Nintendo had a hard time with the release of their previous flagship console, the Wii U, and now the company is looking to make another big release. We know very little of what the console will bring to gamers, though GameStop did make some comments on how the sales for NX could go, along with the supposed cartridge based games the console may end up using.

Spotted at Go Nintendo, we found that the comments from GameStop came directly by their Executive Vice President of Business Strategy, Mike Hogan. During GameStop’s quarterly financial conference call, Mike showed a slide as to how Nintendo’s upcoming NX could outsell the Wii U.

“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.”

This isn’t big news as it won’t take much to outsell the Wii U. The real interesting aspect of the console, as of late, is the possible use of cartridge based video games. There have been rumors floating around the web that suggest Nintendo would resort to cartridge based games instead of using discs.

“We saw these rumors, 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 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.”

In this photo provided by Nintendo of America, Nintendo unveils the new Nintendo NY store, complete with renovated interior elements and design, on Feb. 19, 2016.
In this photo provided by Nintendo of America, Mario and Luigi unveil the remodeled Nintendo NY store during a ribbon-cutting ceremony on Feb. 19, 2016. Joining the Super Mario Bros. (left to right) are Charles Martinet, the voice of Mario, and Nintendo of America executives Doug Bowser, Vice President of Sales; Scott Moffitt, Executive Vice President of Sales & Marketing; and Rick Lessley, Vice President of the Supply Chain Group.​

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