Nintendo Co. is expected to maintain its recent stock market performance with the upcoming release of its next-generation gaming console, the Switch 2.

The company has seen a 25% rise in shares over the past year, surpassing Japan’s Topix index.

Its market capitalization has exceeded US$87 billion, driven by successful content strategies and expanding intellectual properties into movies and theme parks.

Junko Yamamura of JPMorgan Chase predicts the new console and upcoming software titles will help recover earnings starting in fiscal year 2025. This comes following a decline in demand for the previous Nintendo Switch.

Investor optimism is bolstered by the potential release of games like Mario Kart 9 and a Legend of Zelda movie.

However, analysts caution about risks, including challenges with the new hardware and potential exposure to tariffs, particularly in the US market.

Recent Nintendo developments