Nintendo shares soared to a two-month high on Wednesday, achieving a new record high, fueled by the blockbuster launch of its next-generation console, the Switch 2, as well as its perceived safe-haven status amidst global market volatility.
The Japanese gaming giant saw its stock climb for a fifth consecutive day on the Tokyo Stock Exchange. During Wednesday’s trading session, the stock surged by as much as 7.1% before closing the day up 6.59%. This performance pushed Nintendo’s market capitalization to ¥17.22 trillion (approximately $118.67 billion).
The highly anticipated Switch 2 hit the market on June 5th. Early sales figures, released by Nintendo last week, showed that the new console sold over 3.5 million units in its first four days, far exceeding the performance of the original Switch during its launch period. This rapid uptake established a new company record for fastest initial sales.
Nintendo reported that the Switch 2 practically doubled its first-week sales compared to its predecessor, the original Switch, across all major regions, including Japan, North America, and Europe.
The original Switch, launched in March 2017, sold approximately 2.7 million units in its first month. As of March 2025, the original Switch had sold a staggering 152 million units, positioning it as the third best-selling gaming console globally, behind only Sony’s PlayStation 2 and Nintendo’s own DS.
In its recent financial report, Nintendo projected that the Switch 2 would achieve sales of 15 million units in its first year.
Analysts point out that, in addition to the strong hardware sales, Nintendo’s stock price is also benefiting from broader macroeconomic trends.
Hideki Yasuda, an analyst at Toyo Securities, noted that the failure of the United States and Japan to reach an agreement on tariffs during the G7 summit spurred an influx of capital into the gaming sector, which is less exposed to tariff risks.
This positive sentiment is buoying other Japanese gaming companies as well, as the industry is perceived as a more resilient investment during periods of tariff uncertainty and rising geopolitical tensions.
Square Enix saw its shares rise as much as 4.7% on Wednesday, while Bandai Namco gained 3.9%.
Japanese Prime Minister Shigeru Ishiba met with US President Donald Trump at the G7 summit in Canada this week, however, no trade deal was reached.
Like other nations, Japan is grappling with the impact of potential 25% tariffs on automobiles and auto parts, a 50% tariff on steel and aluminum products. Furthermore, the Trump administration has also levied a 24% retaliatory tariff on various Japanese imports, temporarily reduced to 10%.
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