Unlikely Hit! Pokémon's New Game Sells 5 Million Copies, Nintendo Stock Jumps 7%

Nintendo's stock price surged 7% in Tokyo on Friday (14th), driven by the global sales of its Switch 2 exclusive game 'Pokémon Pokopia' surpassing 5 million units, significantly boosting market confidence in the outlook for game software and console sales.

On Thursday, Nintendo announced that 'Pokémon Pokopia' had sold over 5 million copies worldwide just four months after its release on March 5th. This makes it the second best-selling game on Switch 2, surpassing 'Donkey Kong: Banana Power Up' and trailing only 'Mario Kart World'.

'Pokémon Pokopia' is not a mainline entry in the Pokémon series and was not considered a major title ahead of launch. The game blends Pokémon characters and world-building with cozy life-simulation gameplay similar to 'Animal Crossing: New Horizons', resulting in market reception far exceeding expectations. Nintendo also announced plans to release expansion content and updates to attract new players and maintain engagement among existing ones.

As the game is exclusive to Switch 2, analysts believe strong software sales could further boost demand for the console. Yuuki Yasuda, an analyst at Toyo Securities, stated that the game's popularity is expected to support Switch 2 sales. He also noted that Nintendo's reported plans to launch Switch consoles in Indonesia this year could help advance its global market expansion.

Nintendo's stock price rose as much as 7.5% on Friday, reaching 8,945 yen, and is on track for a third consecutive weekly gain—the longest weekly winning streak since November last year. Mitsui Ikuo, fund manager at Aizawa Securities, said it would not be surprising for Nintendo's stock to exceed 10,000 yen, given the solid sales performance of its major game titles.

Nintendo had been weighed down earlier this year by concerns over rising memory prices, a price hike for Switch 2, and declining hardware sales. For the quarter ending in June, Switch 2 sold 3.82 million units, a 34.4% year-on-year decline. The company forecasts 16.5 million units to be sold for the fiscal year ending March 2027, lower than the previous year.

However, Nintendo's first-quarter earnings beat expectations, gradually easing investor concerns about cost pressures eroding profits. The stock has rebounded over 26% in the past month, despite remaining down more than 16% year-to-date. Analysts believe that as market concerns subside and new titles such as the remake of 'The Legend of Zelda: Ocarina of Time' and two new Pokémon games are released, both stock price and console sales could see further recovery.