This past week, with the announcement that Monster Hunter XX will be released on the Nintendo Switch, the Nintendo Company's stock reached an 8-year high. The cult hit, a highly successful game franchise from Capcom, is extremely big in Asia, particularly in Japan, but less well known in the West.
Previously, Capcom's Monster Hunter was single-handedly responsible for selling millions of PSPs and 3DSs to the Japanese mobile market. The series began with a release in 2004 for the PlayStation 2, but branched out in recent years to include PCs, Macs, and virtually all consoles.
This is a big deal, not only for gamers, but for Nintendo, whose share price rose five percent on May 26th to JPY 33,510.00, which added about $2.2 Billion U.S. to its current market cap. An impressive feat, to say the least. After struggling for a number of years globally, Nintendo has, in the last year, seen a large surge in popularity, first with Pokémon Go!, the mobile app, and then with the Nintendo Switch, which has been on an incredible sales streak. In its first month alone, over 2.74 million units were sold, making it the fastest selling home console in history.
We don't yet know when Monster Hunter XX (that's "double-cross," not an actually double x, by the way) will launch on the Switch, but its reveal trailer was released yesterday.
This is Nintendo's highest stock price since October 2008. While analysts don't expect the new Monster Hunter title to necessarily break big in global markets, there is strong belief that it will boost Switch sales in Japan, Hong Kong, China, Korea, and Taiwan, where the brand is well known. There was strong belief that Monster Hunter on the 3DS helped boost the mobile console's sales.
According to Serkan Toto, the CEO of a Japanese game industry advisory, Kantan Games:
"People were buying the 3DS just because of the game. A lot of investors are expecting a similar effect with the Switch," he said in a Friday interview to CNBC via phone.
This deal between Capcom and Nintendo have somewhat allayed the fears that the console, which has strong in-brand recognition via Mario, Zelda, and other spinoff games, would lag behind the Xbox One and PS4 in third-party games. And Capcom isn't the only one, it turns out. EA and Sega, two powerhouses in game development have announced plans to develop games for the console. The future of the Nintendo Switch, and by extension, the whole company, is looking bright.