Tuesday, rumors swirled around Nintendo (OTCPK:NTDOY) and its latest gaming console. A picture was posted on Best Buy (NYSE:BBY) Canada's website promoting a Wii Mini gaming console. The new console has officially been confirmed and will go on sale in Canada December 7th, just in time for the holidays. Nintendo later confirmed the launch by showcasing the item on their own website.
The Nintendo Wii Mini will sell for $100 and if you live in Canada, you can pre-order your console now. The console will be a smaller version of the popular Nintendo Wii. Noticeable omissions are no internet, and the ability to play old Nintendo GameCube games. Nintendo's Vice President of Canada Ron Bertram said, "Wii Mini is a great gift for the holidays that brings everyone in the family together to play. Wii Mini has a mini price, but it's all about big fun." The Wii Mini comes with a Wii Remote Plus and a Nunchuk.
A quick look to the list of top selling videogames on Amazon (NASDAQ:AMZN) sees these Nintendo games in the Top 40:
- 1. Just Dance 4 (Wii)
- 20. Disney Epic Mickey 2 (Wii)
- 22. New Super Mario Bros. 2 (3DS)
- 27. Just Dance: Disney Party (Wii)
- 28. Lego Batman 2 (Wii)
- 32. Wipeout (Wii)
- 34. Pokemon Black Version 2 (DS)
- 36. Paper Mario (3DS)
- 39. Lego Lord of the Rings (Wii)
As you can see, Nintendo games continue to sell well. The Wii Mini will likely add to high Christmas sales, and could propel the stock higher once Wiii Mini availability announcements are made later on in 2013. Games for the 3DS, Nintendo's new handheld console, continue to sell well. The console has sold over 6 million copies in the first 21 months on the market. This pace places the 3DS ahead of sales of the original DS's launch. The new Nintendo WiiU also sold well recently and will be a huge catalyst for the company going forward.
Nintendo announced that they sold 400,000 WiiU units in the consoles first six days on the market. The gaming console is sold out across retailers after huge demand had the product flying off shelves. Nintendo is working on getting retailers re-stocked and hopes to have a successful holiday shopping season. The company learned from supply issues in 2006, from the original Wii launch, and plans on having a large supply available during December.
Last week, which includes the popular "Black Friday" shopping day, Nintendo also sold 300,000 Wii units. To date, the popular gaming console has sold over 40 million units in the United States and is closing in on a huge total of 100 million worldwide. The company's newest handheld gaming console, the 3DS, sold 250,000 units last week. Nintendo's WiiU sales proved disappointing to some analysts, especially considering Microsoft's (NASDAQ:MSFT) XBOX 360 sold 750,000 units last week. The XBOX 360 has seen its price come down, and was also sold as bundles with games through popular retailers including GameStop. The WiiU sold as a basic version, costing $300, and a deluxe version, costing $350.
The gaming console's soft launch sets up well for additional sales during the holiday season, as there is still a huge demand for the console and will be during Christmas. The console is also set to go on sale in several key markets, including Europe (November 30th), and Japan (December 8th).
In a September article, I highlighted the buying opportunity to purchase shares of Nintendo before the launch of the WiiU. At that time shares were down 12% on the calendar year and over 75% since the launch of the original Wii gaming console. Shares were trading around $15 and I gave a price target of $20 by the end of the year. Shares now sit stuck in the $15 range, after trading as high as $17.63 on October 5th, since that article.
The "soft sales" of the WiiU have shares of Nintendo trading down this week. A great buying opportunity can be had in this huge gaming giant. The WiiU is a growth catalyst going forward for the company. The Wii sold well for three years and still sells large amounts today. The WiiU is the first of three new gaming consoles on the market, providing it with a huge head start. The Wii Mini can also power the company going forward and could move the stock. I recommend picking up shares on the pullback under $16.