Nintendo is a shareholder in the game’s developer Niantic Inc. and Pokemon Co. but has an “effective economic stake” of just 13 percent in the app, according to an estimate by Macquarie Securities analyst David Gibson. Nintendo has invested in Niantic and owns about one-third of the Pokemon Company, which will get licensing fees for loaning out the cuddly monsters’ brand. “The Pokemon Company, which is an affiliated company of Nintendo, holds the ownership rights to Pokemon”.
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On Friday, the Kyoto-based gaming company said income from the game would be limited and that it did not plan to revise its earnings outlook.
Because billions was added to the company’s market value on the strength of Pokemon Go.
The app was initially released in a select number of countries and was rolled out in many more over the following weeks, including Japan on Friday.
“Taking the current situation into consideration, the company is not modifying the consolidated financial forecast for now”, Nintendo said in a stock filing via BBC.
The company will report fiscal first quarter results Wednesday. This may not be the end of the decline, however, as Tokyo Exchange rules stipulate that shares can not fall more than 18 percent per day in trading.
The phenomenal success of Pokemon Go led to a tremendous surge in the price of Nintendo’s stock. When you look at it, Pokemon Go has always been tagged with The Pokemon Company first before Nintendo.
Nintendo is experiencing a huge buy volume of its shares even as stocks fell on Monday. The company is forecasting full-year profit of 35 billion yen (440 million Australian dollars, $320 million), more than double last year’s 16.5 billion yen (210 million Australian dollars).
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Hanke revealed that Niantic is planning to introduce a new batch of second generation of Pokemon characters in “Pokemon Go”.
