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Nintendo's Opportunity With The NES Classic: A Proposal In Brief

I'm sure everyone has heard the news: Nintendo is reportedly no longer manufacturing the Nintendo Entertainment System Classic plug-in device. It possibly may be releasing a Super Nintendo Entertainment System version at some point, but right now that's still in the rumor stage.

Nintendo is currently marketing the popular Switch console. It's doing well right now, but the real test will be a year or two from now -- how well will the system be doing when new consoles are potentially out? What will the quality of third-party attachment rates be like?

I was thinking about the retirement of the NES Classic item and articles that have questioned the wisdom of such a move -- after all, isn't money being left on the table? I would think the answer to that would be yes, but the counterargument is that the company needs to focus on the Switch. I get that. But -- is there a way to satisfy both points?

Yes, there is. It's quite simple.

Bundle the NES Classic with the Switch.

The potential marketing/sales benefits are obvious. A higher price point could be charged for the package (it easily would justify a premium north of $100). When sales of the Switch/NES Classic plateau, just move on to the SNES version.

Shareholders of Nintendo should hope that the company considers something like this.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.