Nintendo share prices dropped 17 percent on the Japanese stock exchange on Monday morning, reacting to a statement the company released on Friday reminding everyone that, no really, it didn’t make Pokemon Go.
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We’ve been saying since Nintendo stock began rallying after the Pokemon Go release that investors need to tread cautiously. “It’s quite an achievement that they connected Niantic with Pokemon, but it’s a little hard to say that it is Nintendo who gave birth to a huge hit”.
Nintendo investors have had a short-lived moment of glory following Pokemon Go’s huge success but their hopes were reduced as soon as the company announced that it did not actually develop Pokemon Go.
The Pokemon Company would receive licensing fees and compensation for collaborating with developer Niantic on Pokemon Go, and Nintendo would receive only a thin slice of that revenue. Don’t worry about Nintendo though.
When it came to gameplay features, Hanke said more Pokemon from the other generations may eventually find their way into the Pokemon Go universe.
That’s a plans for the coming months and years and Niantic certainly have a large base of different Pokemon to add before they will ever run out.
Analysts at Citibank have reported that the wild success of Pokemon Go has turned Niantic into a unicorn. Most fans know that “Pokemon Go” is not yet available in some parts of the planet even after few weeks since its release.
While Bank of America’s Mr Eguchi has the highest price target on Nintendo’s shares, Mr Maeda has the lowest.
The first reason is Nintendo’s projected Q1 earnings report.
“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.
Pokemon GO has launched pretty much all over the globe and yet one of the biggest features from the games initial trailer is still missing.
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Pokemon GO is now available in certain countries. Many consumers associate Pokemon with Nintendo after the company published the games since they first appeared in the 1990s.
