The reason for the downfall is that the investors finally realized that Nintendo doesn’t actually own the mobile phenomenon.
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So what: More specifically, in a press release issued Friday after the market close, Nintendo noted Niantic, a U.S.-based company that developed and distributes the game, has started distributing the Pokemon Go app in Japan.
Still confused about the relationship between Nintendo and Niantic, the makers of Pokemon Go? This may also explain why Nintendo’s stock fell the maximum daily amount allowed on the Tokyo exchange and wiped out 708 billion yen ($6.7 billion) in Nintendo’s market value. Instead, Nintendo has a 32 percent stake in The Pokemon Company, the business that markets and licenses the Pokemon franchise to outside developers. This is likely a signal for things to come, with the publication noting that 18% is the most a company’s stock can drop in a day. (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.
Nintendo said the earnings from Pokémon Go were already factored in when the company released its annual forecasts in April.
“We’re working really hard to keep the servers up and running”.
Nintendo is scheduled to publish its latest earnings report on Wednesday, which is around $330 million in profits. While it’s not likely either of these will be as hugely popular and successful as Pokemon Go, they should hopefully prove interesting to investors.
A week ago, Nintendo shares had nearly doubled to $42 billion since the game was released July 6, first in Australia and then worldwide.
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To be fair, keep in mind Nintendo stock is still up more than 60% over the past month thanks to optimism for Pokemon Go.
