That means that while Nintendo has a major say in the development of Pokemon products and receives a portion of their profits, it does not directly own the franchise itself.
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Nintendo’s market value rose by $7.5 billion on July 11th, just after Pokemon Go went public and became a hit across the globe.
Since its launch, Pokemon Go has sparked a worldwide frenzy among users, who have taken to the streets with their smartphones. Even with Mewtwo as allegedly the most powerful Pokemon, Mewtwo is still not helping Nintendo in making money. Niantic, which spun out of Google past year, partnered with Nintendo to create the game.
The stock went down to 18 percent at the close in Tokyo, which is the maximum one-day move allowed by the exchange.
Nintendo has soared on the popularity of the Pokemon Go game thanks to its shares in the developer Niantic Inc. and Pokemon Co.
“I believe that Pokémon Go will be material in the company’s earnings given the current trends for the game”.
The company, which is due to release its first-quarter results on Wednesday, has forecast a 37% rise in operating profit in the year to March.
So what: More specifically, in a press release issued Friday after the market close, Nintendo noted Niantic, a US -based company that developed and distributes the game, has started distributing the Pokemon Go app in Japan. While it’s not likely either of these will be as hugely popular and successful as Pokemon Go, they should hopefully prove interesting to investors.
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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. How that could go over their heads when Pokemon is a huge part of Nintendo’s business is beyond us.
