Nintendo’s meteoric stock jump came to an end last week after the company sent a note to investors informing them about the limited impact Pokemon Go will have on their bottom line. Other key statements to watch include announcements on Nintendo’s other upcoming mobile games and its next-generation NX console expected to be released next year.
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When investors saw just how successful “Pokemon Go” was becoming, they flocked to buy stocks from Nintendo, which catapulted the company’s share prices to the heavens.
But analysts warned that the rally was overdone since the actual impact of the game on Nintendo’s finances would be moderate at best – a point it confirmed on Friday.
Nintendo is the creator of the Pokemon franchise but the game was developed by US-based Niantic, with the Japanese firm’s affiliate, Pokemon Company, on track to receive licensing fees for the game.
The company will report first-quarter earnings on Wednesday after the market close, a period which ended before the release of Pokemon Go. In other words, Nintendo does not believe that the massive interest in playing the Pokemon GO game will make a material difference to its earnings and profits at this time. Nintendo added it’s not necessary to alter its yearly forecast after accounting for current conditions.
The game, released July 6, was evolved from an earlier Niantic Labs AR app game called Ingress, which Hanke said has also gained in popularity after the release of Pokemon Go.
Game developer Niantic planning cool new things for future “Pokemon Go” game updates.
Whilst it appears to have taken investors by surprise, some analysts are saying the market has “overreacted” to the Nintendo statement.
Under the alliance, DeNA will also be able to strengthen its gaming business at a global scale by leveraging Nintendo’s IP.
If The Pokemon Co has done a poor job of extracting more from the likes of McDonald’s amid the Go craze, then there’s not a lot Nintendo can do about it.
He also shared that they plan to enhance the function of pokestops in “Pokemon Go”.
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