Nintendo shares rise to their highest level in eight years, market value surges by $2.2 billion

On May 26, Nintendo's stock price closed at 33.51 million yen (approximately US$300.72), the highest point since October 2008, and Nintendo's market value increased by US$2.2 billion.

According to foreign media reports, on Friday, after mainstream game developer Capcom announced that it would launch a popular game on Nintendo's flagship game console Switch, Nintendo's share price increased by more than 5%, reaching an eight-and-a-half-year high.

Nintendo's stock price closed at 33.51 million yen (US$300.72), an increase of 5.48% from the previous day. This is the highest point since October 2008. Nintendo's market value increased by $2.2 billion as its stock price rose.

Capcom has launched many mainstream games, including the StreetFighter and Resident Evil series. The company announced that its popular game "Monster Hunter XX" will be available on the Nintendo Switch game console.

In Western countries, this game is not very famous. However, in the Japanese market where the game was launched, it was very popular. Serkan Toto, CEO of Japanese game consulting and consulting group KantanGames, said that in 2011, a version of the game was launched on the Nintendo 3DS game console and effectively helped the game console achieve success in the Japanese market.

"People buy 3DS game consoles because of this game. Many investors want to see similar effects on Switch consoles." Toto said.

Capcom did not provide a detailed introduction to the Monster Hunter XX game. Although Nintendo has its own strong branded games, such as Super Mario and The Legend of Zelda, many investors worry that it will have trouble attracting third-party developers to develop new games for the Switch console.

However, investors 'concerns seem to be alleviated a lot because game companies such as Electronic Arts and Sega Co., Ltd. have developed games for the console. The arrival of "Monster Hunter XX" has enhanced their confidence.

"This sends a signal that the world's top game developers are promoting their top games to Switch consoles, so other game developers may do the same." Toto said.

Nintendo's share price has increased 36.5% since the beginning of the year as it moves into mobile games and launches very popular games such as Pokemon Go and Mario Run. Last year, the company's brand influence was further enhanced after gamers strongly recommended that the Japanese giant re-sell its classic game console NESClassic and showed strong interest in the company's classic game characters.

The Nintendo Switch game console was launched earlier this year and has sold 2.74 million units so far.

In April this year, the company announced expected profits that further raised expectations. Nintendo said its operating profit will reach 65 billion yen in the fiscal year ending March 2018; once this expected target is achieved, its profit will increase by 121% year-on-year. This will also be the highest profit Nintendo has achieved since the fiscal year ended March 2011.

Editor: jessica