NX Reveal Imminent, Expect Nintendo Shares To Pop

| About: Nintendo Co., (NTDOY)

Summary

NX impact not fully priced into NTDOY shares.

Recent internet leaks put release date on track for March 2017.

Expect hype to drive stock price up immediately after NX reveal.

Images in this article are from the Nintendo (OTCPK:NTDOY) patent filing in December.

The Leak Detailed

In a leak appearing on Reddit two days ago, a verified source from a "major retailer" has confirmed that the NX is on track for a March 2017 launch. Other marketing materials released in the leak suggest a bundled Mario title with the console as well as a price point around $299 with bundles in the $399 range.

Further, it appears that retailers will start receiving demo units in February in anticipation of the March release. Other details indicate "interacting with your game on the go" which confirms the mobile/console hybrid nature of the NX. The leak also mentions the potential for 4K video streaming and 1080p @ 60 fps putting the NX in line with the current generation of consoles.

Image result for NX

Further Details of the NX

For those of you not following Nintendo closely, the NX is expected to be a "hybrid" device which allows for on TV play as well as remote play similar to a 3DS or phone. The patent filings include specifications for "removable" controls which can be attached to the mobile screen (which is also a touch screen with haptic feedback).

The real beauty of the NX is that the console will unify Nintendo software development from multiple platforms (mobile and console) into one single device. This will allow for things like Pokemon on a console or "mobile experiences" in traditional console games when you are on the go.

Actionable Trade Information & Why Does This Matter?

The information contained in this leak is not new if you have been following NX speculation closely. The interesting nugget here are that the console appears to be on track for its March 2017 release and that if retailers are getting this information now, Nintendo will be revealing the console very soon.

If you are currently holding NTDOY shares, expect a large initial price spike on the reveal allowing for a "buy on the hype-sell on the news" trade strategy. For a longer term investor sitting on the sidelines, now would be a good time to get into the stock if you believe the NX will be a success.

NTDOY stock has followed this pattern for previous major news stories such as Pokemon GO as well as the initial announcement of Nintendo's push into Mobile gaming. The share price seems to spike as high as $36-$37 if previous patterns continue to hold, but I think longer term the NX could drive the price higher. I do not currently believe that the NX hype is entirely built into the stock price as the stock has slowly drifted down after the Pokemon Go fad quietly faded.

Disclosure: I am/we are long NTDOY.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

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