Nintendo stock experienced a significant surge, jumping as much as 3% on Friday, following the release of the long-awaited installment of the Zelda videogame franchise. “The Legend of Zelda: Tears of the Kingdom” serves as a sequel to the immensely successful “Breath of the Wild” game, which has garnered sales of nearly 30 million copies since its launch six years ago.
The Hype Surrounding “Tears of the Kingdom”
The new Zelda game has received widespread acclaim from critics and gamers alike, achieving an impressive review score of 96 on Metacritic. This stellar reception is expected to have a substantial and lasting impact on game sales in the coming years. The positive reviews act as a driving force, captivating the interest of potential buyers and solidifying the game’s reputation as a must-play experience.
Nintendo’s Fortunes Tied to “Tears of the Kingdom”
The release of “Tears of the Kingdom” carries substantial importance for Nintendo beyond the game’s success alone. It has the potential to significantly boost sales of the company’s flagship Switch console, according to market analysts. JPMorgan’s gaming industry expert, Haruka Mori, predicts a surge in both software and hardware sales, attributing the momentum to the highly anticipated Zelda game. Mori’s positive outlook on the game’s impact on Nintendo’s financial performance suggests that the company’s share price will remain stable.
Prolonging Nintendo’s Hardware Cycle
In addition to bolstering console sales, “Tears of the Kingdom” plays a crucial role in extending the hardware cycle of Nintendo’s aging console. The Switch, having been on the market for six years, requires fresh and compelling content to maintain consumer interest. The release of a highly regarded title like the new Zelda game offers a renewed incentive for players to engage with the Switch and potentially attract new buyers who have been eagerly awaiting the next installment in the franchise.
Film Success and Nintendo’s Growing Influence
Nintendo’s recent foray into the film industry has also yielded remarkable results. The release of the “Super Mario Bros Movie” marked the company’s first major film release in decades. The movie has not only captured the attention of fans worldwide but has also generated over $1 billion in ticket sales since its debut last month. This unexpected success further solidifies Nintendo’s position as a dominant force in the entertainment industry.