Following news that its latest game had broken a domestic sales record, Nintendo, a Japanese gaming powerhouse, saw a 5% increase in its stock price on Tuesday.
A domestic record for any Nintendo Switch software was set in the first three days of sales, according to the firm, with the sale of Splatoon 3 in Japan surpassing 3.45 million units.
One of the most eagerly awaited games in Nintendo’s lineup this year, the action-shooting game debuted on September 9.
After a boom in the business brought on by a pandemic that caused people to spend more time playing video games at home, the success of the title allayed concerns about a downturn. A prospective recession’s effects on the video game market are a concern for investors as well. Nintendo, Microsoft, and Sony, three of the biggest names in gaming, all experienced terrible second-quarter results.
Serkan Toto, CEO of consulting Kantan Games, however, referred to Splatoon 3 as a “cult hit” in Japan and claimed that the recent slowdown in the gaming sector was brought on by a lack of significant games.
“I’m not a big subscriber of the theory that the recession really puts a dent into the video game industry. I think it was really a drought of blockbusters,” Toto told.
“I think it’s really the case that people are drawn to these kind of blockbuster games no matter if there is a recession on the horizon or not,” he added.
Supply chain problems are only one of the challenges the gaming industry still has to deal with.
However, the popularity of titles like Splatoon keeps Nintendo’s flagship Switch platform, which has been around for more than five years, on track, especially as the holiday shopping season draws near.
In November, Nintendo will also be releasing brand-new titles in the wildly successful Pokemon series. The business will hold its Nintendo Direct event later on Tuesday, during which it will provide information on upcoming games.