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Nintendo looks geared to release their upcoming console, codenamed the NX, in Holiday 2016. However, doing so may not necessarily be a good idea, according to market analysis firm DFC International.

nintendo nx

According to Nintendo Life, DFC is warning Nintendo against releasing the NX later this year. The chief problems Nintendo will have to face, according to DFC, include current-gen competitors, as well as the influx of VR devices like the Oculus Rift, HTC Vive and PlayStation VR.

The firm goes on to suggest that a more appropriate time to launch the console would be 2017, which is when the Nintendo NX will have a more substantial impact. DFC also warns that releasing the Nintendo NX might cannibalise profits from their own products, namely the 3DS and Wii U.

I’m a little sceptical about the new console cannibalising 3DS sales, but it does make sense that the Wii U’s days will be numbered as soon as the NX is announced and eventually released. Even without the NX, however, the Wii U is in hot water, DFC claims: “Going forward DFC believes that the potential launch of a new Nintendo system as well as new VR devices, especially the PlayStation VR will have a negative impact on the Xbox One and Wii U.”

Nintendo, for its part, is keeping its cards close to its chest, and not revealing information even to interested indie developers. We’ll have to wait until an official unveiling for further information about the console, which might be as far off as E3 this year, in June.