This may be the lowest point the Nintendo stock could drop today as Bloomberg points out the Tokyo stock exchange doesn’t allow share prices to move more than 18% within a single day.
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Nintendo’s initial huge gain from the app appears to simply be from investors and shareholders wrong beliefs that they were exclusively responsible for Pokemon Go.
It adds that Nintendo owns 32 percent of The Pokemon Company and, therefore, Pokemon Go’s impact on Nintendo’s business “is limited”.
The small team at Niantic Labs, founded internally at Google and spun into an independent entity past year, has struggled to keep the game’s servers running as more users join, Hanke said, and their current priority was to prevent servers from crashing.
The three companies collaborated on the game. The Pokémon Company is going to receive a licensing fee as well as compensation for collaboration in the development and operations of the application.
The stock has since returned to earth, and shares are now up a more modest 60 percent from July 6.
Niantic, however, is trying to prevent this from happening, and the company is already working on some updates, including new Pokemon. In Comic-Con, John Hanke revealed that the company will make pokestops a larger part of the game by making it a pokecenter where a player can heal their pokemons in accordance with the original video game that “Pokemon GO” is based on.
“Taking the current situation into consideration, the Company is not modifying the consolidated financial forecast for now”, Nintendo said.
Nintendo’s shares hit a six year high after the launch of the game.
It’s a model that many mobile game developers use: Make the game free for download, get them hooked and then sell extra items to enhance the game to generate big revenue.
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It is expected that Nintendo will see a slight profit rise from that sale of Pokémon GO Plus, a wearable wrist device that alerts players to nearby Pokémon without them having to constantly look at their phone.
