Nintendo Shares Rise as ‘Pokopia’ Global Sales Top 5 Million

Nintendo Co. shares surged after global sales of its hit game Pokémon Pokopia topped 5 million units since its March launch, with some analysts saying the stock is back on its upward trajectory.

Shares of the Switch 2 maker climbed as much as 7.5% to ¥8,945 in Tokyo on Friday, on course for their third weekly gain. That would be the longest winning streak since November, when the stock began its months-long drop. Nintendo on Thursday announced the latest sales figure for the game, which blends Pokémon characters and lore with gameplay similar to Animal Crossing, highlighting what’s known as a cozy life simulation.

Read more: ‘Pokopia’ Flurry Helps Nintendo’s Switch 2 Top US Sales in March

“Given that its major software titles are selling reasonably well, I wouldn’t be surprised if the shares rise above ¥10,000,” said Ikuo Mitsui, a fund manager at Aizawa Securities Co.

The stock is also getting a boost from a Reuters report which says the company plans to launch its Switch consoles in Indonesia this year, a move that should support Nintendo’s global push, according to Hideki Yasuda, an analyst at Toyo Securities Co.

As Pokopia is a Switch 2 exclusive game, the software’s popularity is also likely to help demand for new hardware, said Yasuda.

Nintendo shares have been underperforming the Topix index since the start of the year. The uptick in the stock comes after a months-long decline driven largely by concerns that rising memory prices would hit the console maker’s margins. The shares fell 28% in the seven months through July 31, far underperforming Japan’s Topix benchmark which rose over 17% in the same period.

The Kyoto-based company’s strong first-quarter earnings have helped reassure investors that worries over memory costs may have been overblown, Yasuda said. The shares are now primed for a recovery as investor concerns recede, he added.

Read more: Nintendo Tops Estimates With Tariff Refunds and Switch 2 Games

“When Nintendo reports strong first-quarter earnings, it tends to report solid annual results as well,” said Yasuda. “This is a good start for the company.”