Will the NX Do for Nintendo What the NES Did Back in the 80s?

The basic concept for current high end gaming systems (PlayStation and Xbox) is that the console is the core system. It’s located in one stationary place and connects to your TV. You use a controller to play the game, and the location of the console is where you play.

This idea of stationary console gaming has been around since the very early video game systems like the Nintendo Entertainment System (NES) and the Sega Mega Drive.

In other words, in over 30 years, there wasn’t any major change in where you play high-end games.

Of course, that all changed with the advent of ‘mobile’ gaming. Smartphones brought the ability to play your games anywhere you were on the go. And, speaking of ‘on the go’, Pokémon GO has taken things to an entirely new (hysterical) level.

Nintendo has never been a company to sit still for long. You can credit them with some of the biggest innovations in the history of gaming.

The NES sparked an industry that’s now worth over US$99.6 billion. They also invented the first iteration of ‘mobile’ gaming, the Game Boy. They had robot accessory (see R.O.B), laser guns, and some of the most profitable gaming franchises (Mario, Tetris, Donkey Kong, Wii Sports and Wii Fit) of all time.

Nintendo, for all their innovative might, are also realists. They know they can’t compete with Sony and Microsoft when it comes to raw horsepower in gaming consoles. So, in order to work their way back to the top of the gaming industry, their next generation gaming console is going mobile.

The Nintendo NX is their upcoming new console. It’s a big change from the likes of the PlayStation or Xbox. But can it do for Nintendo today what the NES was able to do 30 years ago?

Well, according to Eurogamer,

Nintendo’s upcoming NX will be a portable, handheld console with detachable controllers, a number of sources have confirmed to Eurogamer.

On the move, NX will function as a high-powered handheld console with its own display. So far so normal — but here’s the twist: we’ve heard the screen is bookended by two controller sections on either side, which can be attached or detached as required.

Then, when you get home, the system can connect to your TV for gaming on the big screen.

A base unit, or dock station, is used to connect the brain of the NX — within the controller — to display on your TV.

This could prove to be a masterstroke by Nintendo. However, a lot of its success will boil down to two key aspects — gaming content and quality. The content part is up to companies like Electronic Arts [NASDAQ:EA], Activision Blizzard [NASDAQ:ATVI] and Ubisoft [EPA:UBI].

Eurogamer also reports,

 ‘Multiple sources have confirmed that the [Nintendo NX] is based around Nvidia’s mobile-orientated Tegra processor, with development kits currently using the Tegra X1 chip found in the Shield Android TV console and the Google Pixel C tablet.

If the rumour proves to be true, and the NX does recapture some of Nintendo’s magic from the past, it could be a big deal for NVIDIA [NASDAQ:NVDA].

With the stock already having been on a strong run lately, can the NX — and NVIDIA’s tie up with Nintendo — see share prices rise even higher? Time will tell..

Regards,

Sam


Sam Volkering is an Editor for Money Morning and is small-cap, cryptocurrency and technology expert.

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