In the first week Pokemon Go was released Nintendo’s shares went through the roof, but now was the dust settles, investors are realising that Nintendo are not the company that will profit the most from the runaway success.
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Since Pokémon Go’s release earlier this month, Nintendo’s profits have more than doubled in value.
Because of this accounting scheme, the income reflected on the Company’s consolidated business results is limited.
Nintendo added that it had taken the “current situation into consideration”, but had decided not to upgrade its financial forecast.
Hong Kong joined the global Pokemon Go frenzy with the launch of the Japanese mobile game Monday.
If you have been following the news in the past week or so, you probably would have thought it was a great time to buy Nintendo shares.
It seems that Nintendo’s investors weren’t aware of the fact that the company didn’t make Pokémon Go; it was Niantic Labs, a firm formerly owned by Google that previously developed the AR title Ingress.
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’s shares hit a six year high after the launch of the game. Even if Pokemon Go does not directly contribute to Nintendo’s earnings, it owns other characters like Super Mario and Zelda.
Hanke also mentioned that more Pokemon characters could appear in the future, expanding beyond the set of original Pokemon that are in the game, and that there are still hidden features in the game to be discovered.
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Some walked into sensitive military facilities and a nuclear power plant, while other players found themselves the victims of robbery or violent crimes.
