Nintendo has jumped 18% this week as a surprise Pokémon hit drove hope it could boost Switch 2 sales

Nintendo has jumped 18% this week as a surprise Pokémon hit drove hope it could boost Switch 2 sales


A Pikachu Character poses at the Pokemon stand during the Brand Licensing Europe at ExCel on October 04, 2023 in London, England.

John Keeble | Getty Images News | Getty Images

Nintendo shares have rallied 18% so far this week after a Pokémon game became a surprise viral hit, raising hopes it could drive sales of the company’s flagship Switch 2 console.

Nintendo sold 2.2 million units of “Pokémon Pokopia” in the first four days after its release last week, making it the fourth-best-selling title so far for the Switch 2, which was launched last year.

First announced in September last year, the game wasn’t seen as a potentially huge blockbuster, as it is a spin-off from the main Pokémon franchise.

“Pokémon Pokopia” is only available on the Switch 2, with Nintendo’s share price rally this week built on hopes this might drive sales of the flagship console.

Nintendo has previously forecast sales of 19 million units of the Switch 2 for its fiscal year that runs to the end of March. It’s so far sold 17.37 million units.

“Nintendo investors were yearning for system sellers to further maintain momentum for the hardware, and Pokopia is one — even though it’s not a 3D Mario or new Zelda title,” Toto said, referring to two of Nintendo’s most recognizable characters.

Why Nintendo stopped chasing power — and changed the game

“Pokémon Pokopia” is set in a post-apocalyptic world where only Pokémon are left. The player has to rebuild the world into a new utopia. The gameplay has elements of “Animal Crossing,” one of Nintendo’s most popular games on the original Switch.

“Pokopia is extremely well made with high production value, deep gameplay, and a strong multiplayer aspect that supports virality,” Serkan Toto, CEO of Kantan Games, told CNBC.

The game has a rating of 89 on Metacritic, a closely watched game ratings site, making it one of the highest-rated Pokémon games of all time.

Even after this week’s share price rally, Nintendo’s stock is still down about 28% over the last six months.

The stock has struggled amid rising concerns about the surging cost of memory that goes into the company’s consoles, and whether a potential rise in prices could impact margins or demand.

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