Nintendo shares jump 5% after record Splatoon 3 sales in Japan

Shares of Nintendo rose 5% on Tuesday after the Japanese gaming giant said its new title broke a domestic sales record.

The company said sales of Splatoon 3 in Japan exceeded 3.45 million units – a national record for any Nintendo Switch software in the first three days on sale.

Launching on September 9, the action shooter was one of the most anticipated titles in Nintendo’s lineup this year.

The title’s success has eased fears of an industry downturn after a pandemic-fueled boom that saw people spending more time at home playing games. Investors are also worried about the impact of a possible recession on the video game market. Gaming giants Nintendo, Microsoft and Sony all posted disappointing second-quarter results.

But Serkan Toto, CEO of consultancy Kantan Games, called Splatoon 3 a “cult hit” in Japan and said the recent downturn in the gaming market was due to a lack of major titles.

“I’m not a big fan of the theory that the recession is really putting a dent in the video game industry. I think it was really a blockbuster drought,” Toto told “Street Signs Asia” from CNBC.

“I think it’s really the case that people are drawn to these kinds of blockbuster games whether or not there’s a recession on the horizon,” he added.

The gaming industry still faces a number of headwinds, including supply chain issues.

But the success of games like Splatoon helps maintain the momentum of Nintendo’s flagship Switch console, which is now over five years old, especially as the holiday season approaches.

Nintendo is also gearing up to release new games in its popular Pokemon franchise in November. Later on Tuesday, the company will host its Nintendo Direct event where it will reveal details of future games.