Nintendo's not dropping out of the console wars. Courtesy/Nintendo

Looks like Nintendo isn’t ready to drop out of the console race just yet. The Japan-based video game company discussed its next gaming device at a press conference on Tuesday, and the hardware is code-named the “NX.”

Nintendo CEO Satoru Iwata confirmed the NX after the surprising announcement that the company would begin making mobile games using Nintendo IP with Japanese online company DeNA.

Iwata denied that Nintendo’s future would be entirely in the mobile industry, like many analysts suspected, and that Nintendo is still in the “dedicated video game system market.”

"Nintendo has decided to deploy its video game business on smart devices, but it is not because we have lost our passion or vision for the business of dedicated video game systems,” Iwata said.

"On the contrary, because now we have decided on how we will make use of smart devices, we have come to hold an even stronger passion and vision for the dedicated video game system business than before."

In the past, Nintendo has stayed out of the mobile video game realm, a multibillion-dollar market. But the company still will do what many believe it used to do best – create consoles.

"As proof that Nintendo maintains strong enthusiasm for the dedicated game system business, let me confirm that Nintendo is currently developing a dedicated game platform with a brand-new concept under the development code name NX,” Iwata added. He said more information regarding the console would be revealed next year.