The company will report first-quarter earnings on Wednesday after the market close, a period which ended before the release of Pokemon Go. Pokemon is closely associated with Nintendo; past video games have nearly exclusively been released for Nintendo platforms.
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Nintendo owns about 32% of the voting power of The Pokemon Co., which as an affiliated company uses the equity method. It also said revenue from Pokemon Go Plus, a Nintendo-produced accessory for the game expected to go on sale soon, has already been factored into the current guidance.
Shares in Nintendo plummeted the daily limit of 18% on Monday after the legendary gaming company told investors that Pokemon Go will have only a “limited” effect on its bottom line. It has outperformed by 1.08% the S&P500. Why was everyone so insane for Nintendo stock when it made so little money off the actual game itself? At one point following the game’s release, company shares surged by more than 120%, adding $23 billion to Nintendo’s market value.
It’s not that “Pokemon GO” is failing, but rather, it’s Nintendo that is slowly suffering the aftermath of the hype.
Another feature that might make it in the next “Pokemon Go” update is Pokemon breeding, although Hanke said that it is something that the Niantic are still discussing whether they should include it in the game or not.
The Nintendo-backed smartphone game Pokemon GO finally launches in Japan, home of the colorful cartoon characters. (NASDAQOTH:NTDOY) were down 10.9% as of 12:45 p.m. EDT after the video game company revealed the success of Pokemon Go won’t have a significant positive impact on its results. Pretty mad that a company has to basically tell these people to stop investing because they’d made a huge mistake or just hadn’t bothered to check.
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Tokyo-based Pokemon Co. developed the game with Niantic and is entitled to a licensing fee from the US company. The game broke Apple’s record for the most app store downloads within its first week and is also the top app in the Google Play Store.
