Nintendo’s Shares Drop As Investors Realize It Doesn’t Make Pokemon GO

By | 3 months ago 

Nintendo’s shares plummet as investors realize that the company is not actually responsible for the production of Pokemon GO – despite never having claimed otherwise.

Pokemon GO is a global sensation. All over the world, players are logging in to capture Pokemon of their very own, a fact that has made the app a huge success for its developers and Nintendo. In fact, the VR game has become so popular that it smashed stock market records upon release, with the Big N selling $4.5 billion worth of shares in a single day.

But unfortunately for the Japanese behemoth, Nintendo does not actually develop Pokemon GO – a task that falls to Niantic, Inc. and its partnership with The Pokemon Company. Recently, Nintendo released a statement regarding Pokemon GO‘s success and the actual impact that it would have on the company.

pokemon go microtransactions

In it, Nintendo informs fans that it only owns 32% of The Pokemon Company, something that means that Pokemon GO‘s success can only have limited impact on Nintendo’s profits. It seems that investors have realized what this means for the company’s value, something that has caused the big N’s stock value plummeting 17% – representing a massive $6.4 billion.

Although the company’s shares rising made Nintendo surpass Sony in market value, nowhere on the app does Nintendo claim to be involved. Nothing written in the statement was new information, meaning that the company has never been dishonest about its involvement in the development of Pokemon GO. The misguided belief regarding Pokemon‘s ownership was simply down to a lack of research on the investors’ part.

While the latest Pokemon craze is only a taste of what a Nintendo IP looks like in mobile form, Nintendo will actually have ownership over the upcoming Animal Crossing and Fire Emblem games that will be coming to smartphones in the future. These games could be a tremendous source of income for the company if they are successful, and this could lead to the share prices making a comeback sometime soon.

Meanwhile, the company presumably does receive some income from Niantic’s Pokemon GO, a fact that isn’t likely to change anytime soon given by the recent confimation that more generations of Pokemon will be added to the game.

It’s very possible that we’ll see some ties to the upcoming Pokemon Sun and Moon when the titles release later this year but, whatever the form, it’s important that Pokemon GO receives some new features soon in order to stay relevant.

Pokemon GO is available now for iOS and Android in select regions.