Although Nintendo is a shareholder of the said game, it only has an “economic effective stake” of 13 percent according to Macquarie Securities analyst David Gibson, Bloomberg reported.
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By now, many “Pokemon Go” players have chosen their teams but now, those teams have leaders to go along with them.
Shares in Nintendo tumbled 18 per cent on Monday after the company said Pokemon GO would have a limited impact on its earnings – their biggest setback so far after a huge run-up on the smash-hit game.
But Pokemon Go fans need not worry any longer, because John Hanke – CEO of the games creators Niantic Labs – has confirmed that players would be able to trade Pokemon in a future update.
Nintendo owns about 32% of the voting power of The Pokemon Co., which as an affiliated company uses the equity method.
Although dropping 17% after the statement the company is still comfortable; since the game launched around mid-July, Nintendo’s share price more than doubled.
Pokemon Go offers an augmented reality gaming experience and it is easy to own the game since the title is released on the mobile platforms. The maximum profit share Nintendo stand to gain from Pokémon GO is 30 percent. Considering some predict that app could make up to a billion dollars a year, that’s still a lot of money, but not as much as many investors were expecting.
Pokemon Go developers did confirm that the game has hidden “Easter egg” content for players to root out and find.
This week the company admitted that it didn’t not make the game, which was in fact developed by Niantic.
THE global success of Pokemon Go was hailed by many as the thing to return Nintendo back to its former glory – but that idea appears to be short lived.
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Naturally, plenty of investors jumped ship and sold their stock just as quickly as they bought it, but Nintendo’s stocks are still up overall from where they started before the app released.
