The developers at Niantic are looking at introducing cool new things to the massively popular mobile gaming app “Pokemon Go”.
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Why? Nintendo isn’t the only company with a stake in the hit augmented reality game, and it might be earning a smaller share of game profits than investors had expected.
It follows Nintendo’s stock nearly doubling after Pokemon Go’s release, despite the Kyoto-based company having an economic stake of just 13% in the app, according to Macquarie analyst David Gibson. Both Nintendo and The Pokemon Company, one of its subsidiaries, have invested in the privately-held Niantic.
“I believe that Pokemon GO will be material in the company’s earnings given the current trends for the game”.
Users should be wary of diving into and using these scripts, since Niantic, just like any other gaming company, won’t be shy away from banning cheats, which these definitely are. The subsidiary will receive a licensing fee as well as payment “for collaboration in the development and operations” of the game.
He also shared that they plan to enhance the function of pokestops in “Pokemon Go”.
The stock plunged about 16 per cent to 23,720 yen in early trading after it more than doubled in a huge rally following the game’s release earlier this month – making it more valuable than Sony at one stage.
The phenomenal success of Pokemon GO has triggered massive buying in Nintendo shares and even with Monday’s decline, the shares are still up some 60 percent compared with levels prior to the game’s July 6 launch in the United States, Australia and New Zealand.
The sharp losses posted Monday reflect the new guidance from Nintendo. Nintendo said, however, that sales of the device have already been factored into its earnings outlook.
Pokémon GO is yet to be released in Japan, but the government is already quite anxious about the hit Niantic app’s launch in the country because of numerous reports of accidents the game has caused overseas in recent days.
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The company will report first-quarter earnings on Wednesday after the market close, a period which ended before the release of Pokemon Go.
