It?s not that “Pokemon GO”?is failing, but rather, it?s Nintendo that is slowly suffering the aftermath of the hype. After the closing of the stock market in Japan on Friday, Nintendo suffered the biggest drop in stocks since 1990, posting a 5,000 Yen plummet in the stock market. It readily gave the giant company a staggering 18 percent drop; the maximum allowable per day in the stock market.
The plummet was caused by Nintendo admitting that they only own 32 percent of The Pokemon Company, the business behind the successful interactive and augmented reality game “Pokemon GO.”?Apparently, investors realized that recently, giving game developer Niantic and The Pokemon Company their due recognition on the immense success of the ?Pokemon GO? game.
In the Consolidated Financial Forecast of Nintendo, it stated that Niantic Inc. is responsible in the development and distribution of the “Pokemon GO”?game in all smart devices. The Pokemon Company, on the other hand, has the sole ownership and rights to Pokemon. Nintendo, as part of the platform that hosts Pokemon games, owns only 32 percent of the voting power in The Pokemon Company.
Meanwhile, “Pokemon GO”?recently launched in Japan and Hong Kong, something that is predicted to also benefit the Nintendo company. Previously, ?Pokemon GO? suffered server glitches when it launched in Canada, but all of that seemed like a thing of the past.
Senior analyst David Gibson from the Macquarie Securities Group said ?The market has overreacted to the Nintendo statement.I believe that Pokemon GO will be material in the company’s earnings given the current trends for the game.? Bayview Asset Management portfolio manager Yasuo Sakuma said ?Nintendo is well-placed to boost its earnings with its other characters, such as Super Mario and Zelda and their potential is unknown.?
Nintendo has enjoyed a billion dollar increase in the worth of their stock when the “Pokemon GO“?was at its prime and now, it looks like they will have to deal with the sudden drop following the latest revelation about the nature of the game. Have you played ?Pokemon GO? recently? What do you think of the new augmented game? Don?t miss the latest updates on the ?Pokemon GO? by reading on TheBitBag.