As a result, Nintendo’s shares dropped by 18 percent when trading opened on Monday, losing $6.7 billion in market value.
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Nintendo explained on Friday that their expected earnings from the widely popular mobile game would be “limited”. This follows a press release by Nintendo outlining the financial impact of Pokemon Go.
Shares in the 127-year-old Japanese gaming company had nearly doubled in the weeks since the augmented reality phenomenon gripped gamers across the world, before it admitted on Friday that despite the game’s success, Nintendo would not expect to revise its earning forecasts upwards. The Pokemon Company holds an undisclosed stake in Niantic – a privately held company – and also controls the licensing and merchandising for Pokemon.
Bloomberg notes this is the biggest drop for Nintendo since 1990, although the price of the stock is still way up from where it was (just over 14,000 yen) when Pokemon Go first launched in the United States and other regions in early July.
Nintendo and Pokemon Quietly Dominated the Games of Comic Con 2016. Not only is the game free, but Nintendo only gets slightly more than a 10% cut of in-app revenue. The Pokémon Company is the Company’s affiliated company, accounted for by using the equity method.
“The company is not modifying the consolidated financial forecast for now”, its statement said.
Actually, it isn’t. Yes, Nintendo has always been the company most associated with Pokemon, but the franchise is actually the property of The Pokemon Company, which Nintendo only owns 32 percent of.
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Now the situation seems a little calmer, therefore, the company has taken the final decision to launch in Japan and gradually Pokemon Go will be available for some others countries as well.
