Nintendo shares pop 7% after 'Pokémon Pokopia' sales top 5 million

Nintendo shares closed 7% higher in Japan on Friday after it revealed sales of "Pokémon Pokopia" surpassed 5 million units on its flagship Switch 2 console. The milestone was hit just over four months after it launched on March 5. This would make it the second-best-selling game on the Switch 2, ahead of "Donkey Kong Bananza" and behind "Mario Kart World." Investors watch updates of game sales closely because hit titles can often drive shipments of Nintendo's console, which has faced some headwinds. Rising memory prices forced the company to raise prices of the Switch 2, which went on sale just over a year ago. In the June quarter, Nintendo sold 3.82 million Switch 2 consoles, down 34.4% year-on-year. The company forecast sales of 16.5 million Switch 2 consoles in its fiscal year ended Mar. 31, 2027, which would also be lower than the same period the previous year. Nintendo also announced expansion packs and updates to "Pokémon Pokopia" as it looks to bring new gamers to the title and keep current players engaged. Shares of Nintendo are still down more than 16% this year. But, over the last month, the stock has rallied more than 26% as investors bet on an improving outlook and hope upcoming blockbuster games spur console sales. Nintendo plans to launch "The Legend of Zelda: Ocarina of Time," a remake of the classic first released on the Nintendo 64 in the last 1990s, on the Switch 2. Two new Pokémon games are also slated for next year.