Hmm...I'm not really finding this that funny. The buildup to the jokes take too long, I didn't find the joke about how you did a stereotypically black voice for that spirte all too funny, you animated Link's mouth such that it was above his eyes and /didn't/ turn it into a joke, and while the mention of the hot tub incident was funny, it was sort of funnier as a noodle incident- the actual hot tub montage is just....eh, not so funny. (the beginning is kind of boring, to be honest- I attempted to wait to see if there was any funnies coming up, but was a little disappointed in that area.)
The sprite animation is fine, but I think it's better to do without animating the mouths (well, besides the blond hair sprite across from Link) and instead just move the heads a bit; but besides that I find it fine.
I think in the future- maybe funnier jokes? :) The key is reactions. I was also expecting a huge bout of silliness about the weapon of PWNAGE, and it's not discussed too much and there isn't so much silly beyond "let's get this arbitrary weapon". Like, what IS the weapon of PWNAGE? There are a hundred gags you can do, involving flamingoes, tanks, and evil pixels. But it's not discussed. Lost comedy potential, man.
I've never seen any sort of series so I wouldn't know if you're basing it off of anything (in which nothing can be done about the story), but if you aren't, then- well first, "Buff PIkachu" is funny enough, but the way it's executed isn't that funny- because you sort of arent' surprised by it, so it's just a weird pikachu. A funny gag would be, maybe Link selects Pikachu in his inventory, does a classic Pokemon stance, have Pikachu look really really cute, and then Pikachu speaks in this gruff deep voice about how he's annoyed with Link for summoning him- and then tries to convince him to go on the adventure with the noodle incident.
Keep at it! If you decide to remake this, or make a better version or something, send it to me, I'd be happy to see some improvement. But as it is right now, I cannot find it too funny.