TOKYO-- Nintendo Co. is likely to release a new hand-held game device this year, an analyst at U.S. research firm IHS Inc. said on Thursday, strengthening a market view that the videogame company’s new system, code-named NX, will include a portable machine.

“We expect a small recovery in shipments of flat-panel displays for game devices because of Nintendo’s new game hardware expected to be released in 2016,” said Hiroshi Hayase, a senior principal analyst at IHS Technology, part of IHS, at the firm’s display forum held in...