Pokemon Go’s success translates into stock rise for Nintendo

by Daniel VuckovicJuly 11, 2016

Everyone is loving Pokemon Go, even Nintendo’s shareholders who have seen some big gained made by the company on the stock exchange.

The stock closed up 24.52% on Monday, the highest it has been in almost a year. It’s reported that Nintendo added $7.5billion to its market value in just the last two days (Monday and last FridaY).

The Pokemon Go app is also only available in the US, Australia and New Zealand so far with developer Niantic slowly the roll out so the servers can keep up. Once this baby hits Japan and Europe – you’re going to see some serious shit.

While this is good news in the short term, Nintendo will have to make sure Pokemon Go stays at the top of the ‘Top Grossing’ charts for real revenue to be seen.

“If [Pokémon GO] holds on to the top spot for sales, like other top-ranking titles, we would assume that monthly turnover reaches 10 billion yen or higher, but given particular characteristics of apps, at this point, we cannot comment with high certainty on [its] sustainability,” said Mia Nagasaka, an equity analyst with Morgan Stanley MUFG Securities.

Analysts are also saying that while, Nintendo ultimately does profit from it – Pokemon Go is not one of the games that Nintendo and DeNA are working together on. The Pokemon Company have been working on Pokemon Go, in addition to those games.

“Hence, we do not think success of Pokémon GO relates directly to the collaborative apps with DeNA, or Nintendo’s core business strategy,”

Something to think about.

Source: CNBC

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Daniel Vuckovic
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