Wedbush: Switch 2's new mega-hit Pokopia will be established as a 'legitimate console seller'

Wedbush Securities has confidence that Nintendo's latest hit game is popular enough to convince consumers to buy into the Switch 2 ecosystem.

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Nintendo's latest holiday quarter didn't entirely impress in regard to Switch 2 unit sales, but that trend appears to have changed thanks to must-have exclusive software. The latest gaming craze is Pokopia, a new Pokemon spin-off multiplayer builder that has sold 2.2 million copies in just 4 days. The game's success alerted Wall Street, and Nintendo has tacked on an extra $14 billion to its market cap since Pokopia's release.

Thanks to the game's breakout results, and the ongoing buzz and engagement across social media, institutions like Wedbush are taking note of Pokopia's performance. The firm believes that the game could end up being a system-seller for the Switch 2--which certainly appears to be the case as reports of Switch 2 console scarcity are spreading across Twitter and Reddit.

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Here's Wedbush's note on Pokopia and its effect on the Switch 2, as per tech journalist Tae Kim:

"We are raising our FY:27 EPS estimate to ¥469 (from ¥434) and increasing our price target to ¥10,500 (from ¥9,500), maintaining our 22x multiple and NEUTRAL rating.

"The early success of Pokopia is set to drive higher software attach rates and raise our hardware sell-in floor...

"Pokopia is exhibiting exceptional sell-through velocity. Widespread physical inventory exhaustion across global retailers within the first week of launch, coupled with record-breaking social engagement metrics, signals higher-than-expected sell-through...

"We believe the title will establish itself as a legitimate console seller"

This may be one of the last opportunities for Japanese gamers to buy into the Switch 2 at the current price, as it's believed that Nintendo is losing money on each region-locked, Japan-only Switch 2 that is produced. As a result, Nintendo may raise the price of these models in the coming months.

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