Nintendo’s announcement came on Friday, with a warning that the smash hit game would only have a limited impact on earnings.
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Nintendo fell more than 3% lower, following a 17.7% plunge on Monday.
Nintendo is, however, developing a device called the Pokemon Go Plus, which is a wearable connected to the user’s smartphone by Bluetooth, alerting users to Pokémon and Pokéstops as they wander the world not staring at their smartphone. Nintendo’s stock doubled in value after the release of the game but they plummeted after the company reminded investors that it didn’t make Pokemon Go.
Overall, Japan’s Nikkei 225 lost 1.5% to 16,363.82 points.
Future updates coming to “Pokemon Go” will be making widespread changes to the massively-popular augmented reality (AR) title, and more specifics about them were revealed during the recently concluded Comic-Con panel for the game.
The upcoming release of Pokemon Go Plus has also been factored into their financial forecast.
Nintendo has invested in Niantic and owns about one-third of the Pokemon Company, which will get licensing fees for loaning out the cuddly monsters’ brand.
Yasuo Sakuma, portfolio manager at Bayview Asset Management, said he still saw the company’s shares as cheap given the potential for Nintendo to reap rewards from other strong character franchises as it forays deeper into mobile gaming. This means that Nintendo would have to produce a whopping 200 billion yen by the time the year ends, which is a far cry from the 35 billion yen that the company is forecasting. After all, some of the Pokemon are exclusive to certain countries, so it’s possible that the developers in Niantic are still deciding where certain Pokemon should be placed before the mobile game is ready for a worldwide release. “From a long-term perspective, the current stock price isn’t necessarily expensive”.
“The market has overreacted to the Nintendo statement”, said David Gibson, a senior analyst at Macquarie Securities Group. (Japan), which has set up Pokemon Go checkpoints at its stores and is promoting meals with Pokemon toys. In an earlier interview with Business Insider, Hanke even referred to trading as a “core element” of earlier Pokemon games.
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While Bank of America’s Mr Eguchi has the highest price target on Nintendo’s shares, Mr Maeda has the lowest.
