Nintendo and Pokemon Company both own undisclosed stakes in Niantic so it’s unclear how much each company stands to gain. (NASDAQOTH:NTDOY) were down 10.9% as of 12:45 p.m. EDT after the video game company revealed the success of Pokemon Go won’t have a significant positive impact on its results.
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Bets by short sellers against Nintendo had remained low in mid-July while the company’s stock surged more than 100 per cent over seven sessions.
Monday was the first trading day following the letter, and Nintendo stock fell 17.7 percent in Tokyo, which was the company’s biggest fall since 1990, according to Bloomberg.
SAN DIEGO – The head of the company behind “Pokemon Go” says more capabilities for the wildly popular smartphone game are coming, including the ability to trade Pokemon.
The increase in share prices was still too small of Yasuo Sakuma, portfolio manager at Bayview Asset Management seeing the potential of Pokemon Go’s earnings on the company, as well as other games as soon as Nintendo goes deeper into the mobile gaming indistry.
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.
Pokemon GO was developed by US-based software developer Niantic, a San Francisco company famous for creating augmented reality mobile games like Ingress.
Nintendo only owns 32 perceent of the Pokemon Company, the owners of the Pokemon brand, and the licensing rights to the world-wide sensation game, Pokemon Go. Nothing Nintendo disclosed about the ownership of the game was new information, but markets were shocked anyway.
“Because of this accounting scheme, the income reflected on the company’s consolidated business results is limited”, Nintendo wrote in a notice.
A man plays Pokemon Go on his smartphone outside of Nintendo’s flagship NYC store.
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The company is expected to report its first quarter earnings later this week.
