Nintendo Stock Achieves Historic Peak Fueled by Anticipation for Switch Successor and Oil Investment Rumors

Nintendo shares soared to a historic high, reaching 7,902 yen ($54) and propelling the company’s market capitalization beyond 10 trillion yen ($69 billion), a milestone not seen since November 2007. This surge was a significant contributor to Japan’s Nikkei Stock Index, which surged to nearly a 34-year high on Wednesday, closing at its highest level since February 1990 with a 2.01% increase.

Several factors played a role in Nintendo’s record-breaking performance. Foremost among them is the highly anticipated launch of the successor to the Nintendo Switch, with industry insiders expecting the new console to hit the market later this year. Reports from last summer suggested that development kits for the successor were already in the hands of key partner studios, fueling speculation and excitement among investors.

Additionally, Nintendo’s expanding intellectual property (IP) business has generated high expectations. The Super Mario Bros. Movie, released last year, became the second-highest-grossing film globally in 2022, trailing only behind Barbie. Nintendo has also announced plans for a Legend of Zelda movie, adding to the excitement surrounding its IP ventures.

The company’s foray into theme parks is another positive factor. Nintendo is currently expanding its theme park presence with a new Donkey Kong Country section at the Super Nintendo World area in Universal Studios Japan. The theme park expansion aligns with Nintendo’s strategy to bring its beloved characters and worlds to diverse entertainment mediums.

Speculation about oil money entering the Japanese gaming market has also contributed to the surge in Nintendo shares. Reports suggest that Saudi Arabia’s Public Investment Fund (PIF), chaired by Crown Prince Mohammed bin Salman, has increased its stake in Koei Tecmo, the publisher of Dynasty Warriors and Ninja Gaiden, from 5.56% to 6.60%. The PIF is already a significant player in Nintendo, holding an 8.58% stake, and in 2022, it acquired a 5% stake in Capcom, known for Resident Evil and Monster Hunter.

While Nintendo has not made any public statements about these developments, the convergence of a new console launch, successful IP ventures, theme park expansion, and increased investment speculation has propelled the company to new heights in the stock market. As the gaming industry evolves, Nintendo seems well-positioned to capitalize on its rich portfolio of games and characters.