The Japanese video game company experienced an extreme boost in shares after Pokémon GO – the augmented reality game that you already know everything about – was released earlier this month. It was still as high as 60 percent in comparion with the time the game was first launched on July 6 in the United States, Australia and New Zealand, which added about $12 billion in terms of market value.
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The stock sank 18 percent to 23,220 yen at the close in Tokyo, the maximum one-day move allowed by the exchange, noted Bloomberg.
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.
However, some of these financial spikes have now come back down to earth after investors were warned that Pokemon Go is not necessarily going to herald a tsunami of cash into the company.
Nintendo’s US shares fell 11.6% to 25.65 on the stock market today.
It is expected that Nintendo will see a slight profit rise from that sale of Pokémon GO Plus, a wearable wrist device that alerts players to nearby Pokémon without them having to constantly look at their phone.
Teams can be chosen by players once they have reached level five of the game, and can be added to the game by tapping a Gym.
Nintendo also has just 32 per cent of the voting power of the Pokemon Company, an affiliate company which holds the rights to Pokemon and will receive a licensing fee and compensation for the development of the smartphone application.
According to the Guardian, Nintendo released a statement after markets closed on Friday regarding the “Impact of “Pokémon GO” on the Consolidated Financial Forecast”.
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He pointed out that the announcement itself isn’t necessarily “shocking” but it is a “surprise” the press release was issued on Friday rather than when the company reports earnings on Wednesday. Things are starting to go downhill for Nintendo though with shares in the company on the decline with a revelation that the popularity of the game doesn’t translate to big profits for Nintendo.
