Nintendo explained on Friday that their expected earnings from the widely popular mobile game would be “limited”.
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On Friday, Nintendo put out a statement pointing out that it owns only 32 percent of the voting power of The Pokémon Company, an affiliated company that holds the ownership rights to Pokémon.
The drop partially offset Nintendo’s recent, extraordinary climb, when its shares and market capitalisation doubled after Pokemon Go’s release on July 6.
The UK-regulated forex broker Fortrade informed its clients that it is expanding its instruments portfolio by adding trading on stock of the Japanese consumer electronics and video games giant Nintendo (OTCMKTS: NTDOY), through the broker’s proprietary trading platform Fortrader. According to a research note sent to investors last week, the company that created Pokemon Go is now worth $3.65 billion. “The Pokémon Company is going to receive a licensing fee as well as compensation for collaboration in the development and operations of the application”, Nintendo said. Bets that shares of videogame maker Nintendo will fall have quadrupled in the past week following a major rally sparked by the wild popularity of its Pokemon Go smartphone game.
The sharp losses posted Monday reflect the new guidance from Nintendo.
Nintendo dropped by 18 per cent after having an initial rise due to Pokemon Go.
“The market has overreacted to the Nintendo statement”, Macquarie Securities Group’s senior analyst David Gibson told Reuters.
Niantic Labs founder John Hanke has dished on the upcoming updates of “Pokémon Go” this weekend.
Nintendo is the creator of the Pokemon franchise but the game, released on July 5, was developed by US-based Niantic. The game broke Apple’s record for the most app store downloads within its first week and is also the top app in the Google Play Store.
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Now the situation seems a little calmer, therefore, the company has taken the final decision to launch in Japan and gradually Pokemon Go will be available for some others countries as well.
