A recent news report suggests that the N5 has been put on hold for the forseeable future.

It could be good, it could be bad folks, as a Dow jones news wire reports the following news on the rumoured successor to the current generation of Nintendo hardware, the Nintendo Gamecube:

OSAKA (Nikkei)--Nintendo Co. (7974.OK) has decided not to release a new video game console to follow its current GameCube for the time being, the Nihon Keizai Shimbun reported in its Tuesday edition.

The home-use game machine and software developer will instead diversify games and sell newly developed peripherals mainly for the GameCube. It will make games for the current model more appealing, while rivals Sony Corp. (6758.TO) and Microsoft Corp. (MSFT) plan to debut high-performance next-generation consoles that can be also used for non-game content such as movies and music.

Nintendo plans to release peripherals as early as 2005. Although details aren't yet known, these devices are expected to diversify playing styles by improving the gaming experience and connections with hand-held units rather than improve graphics and sound quality.

The decision to withhold the release of a new console was made because while the game market is contracting and becoming more diverse, "customers are fully satisfied with the performance of the current model," President Satoru Iwata said.

Nintendo will continue in-house development of a new home-use game machine for release in the future, but for the next two or three years will add functions to the GameCube.

Phew! Well, what does this mean for us? It means that Nintendo will most likely NOT be releasing the N5 before the release of the PS3 and the second incarnation of the Xbox. Instead, the manufacturer will continue to release peripherals and games for the machine and hopefully thereby extend the lifespan.

Maybe this is spy tactics on the part of Nintendo as they try to get the measure of their rivals to ensure the eventual superiority of their Gamecube successor?

Maybe they've forgotten the lessons of the 32x, Mega CD and the N64 expansion pack? That by making non-standard peripherals essential to the playing of some games that you split your userbase in half and make yourself unpopular?

Who knows what the truth is behind this shocking report-which I'd like to point out, has not officially been confirmed by Nintendo. But speculation is bound to run rife for the next few days.

For those of you who are as panicked and bewildered as I, I can but offer the simple yet comforting words of Shigeru Miyamoto in the recent NOM interview:

"We are currently developing the machine that can realise a number of brand-new and enjoyable ideas. But I'm sorry that I can't dwell on the details today. In 2004, the titles which make use of the connectivity between GameCube and Game Boy Advance will be enriched, including Pac Man vs. and Zelda: Four Swords. You will see that the great potential of GameCube will come to fruition."

"Before you will touch and play with our next-generation products, we will provide you with a number of unique experiences and unprecedented joy with the existing machines, including Game Boy Advance. Please keep your eyes on Nintendo in 2004!"

It would seem that a successor DOES exist, but we just don't know when we are likely to see it. Stay tuned for more developments as they happen.

UPDATE: Both IGN and Yahoo have contacted Nintendo and they have given an official response, Beth Llewlyn, Nintendo of Americas director of Public Relations had this to say:

"First -- much of the Nikkei article is speculation. Mr. Iwata's comments are from a prior interview and not in direct response to the subjects raised in the article. Second -- We are staying in the hardware business. We're working on our next generation console system and will launch it at the same time as our competitors."

Well, it seems that the article printed by the Nihon Keizai Shimbun was purely speculation and rumour, rumour which I can say I'm glad has been scotched. Thanks must go to Yahoo and IGN for contacting Nintendo and helping to put everyones mind at rest.