“The market has overreacted to the Nintendo statement”, said David Gibson, a senior analyst at Macquarie Securities Group, noting the game in Japan had broken records with 10 million downloads in one day.
Advertisement
TOKYO-Shares in Nintendo plunged Monday after it warned that the Pokemon Go mania sweeping the world would not translate into bumper profits, taking the wind out of a dizzying rally that saw the firm’s value more than double.
There are some elements that the company is thinking of developing for Pokemon GO that may or may not ever work out.
Niantic told panel attendees that the three team leaders weren’t quite ready when the app launched this month, but are on their way to Pokemon Go. Both Nintendo and The Pokemon Company, one of its subsidiaries, have invested in the privately-held Niantic.
Nintendo could also profit from sales of “Pokmon GO Plus”, a separate device that enhances the gaming experience. The company said it had already factored sales of Pokemon GO Plus into its previous earnings forecast.
The app uses satellite locations, graphics and camera capabilities to overlay cartoon monsters on real-world settings, challenging players to capture and train them for battles.
Pokemon GO is Nintendo’s first venture into mobile gaming, but Yasuo Sakuma, portfolio manager at Bayview Asset Management, says the company still has the potential to profit from other strong character franchises as it continues to explore mobile gaming.
During a question-and-answer session with the audience, Hanke said the team was aware and fixing the glitches and bugs in the game and took fans’ suggestions on what to add, such as possible functions to breed Pokemon. Even if Pokemon Go does not directly contribute to Nintendo’s earnings, it owns other characters like Super Mario and Zelda.
Seven analysts’ estimates that have been revised since the game’s launch range from 36 billion yen to 60 billion yen.
Advertisement
Some walked into sensitive military facilities and a nuclear power plant, while other players found themselves the victims of robbery or violent crimes.
