Digital Transformation

Nintendo share price dives following Pokemon Go success

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By Charlotte McEleny | Asia Editor

July 25, 2016 | 3 min read

Nintendo's share price fell by almost 16 per cent this morning after it said that the Pokemon Go phenomena would have little impact on it's bottom line.

Nintendo owns just a third of the Pokemon Company, which will receive licensing revenue, and most of the profits are likely to Niantic who developed the game, according to the South China Morning Post. It may also make money from a specific part of the app called “Pokemon Go Plus”, according to reports.

Nintendo, said: “the income reflected on (Nintendo’s) consolidated business results is limited”.

Pokemon Go NSPCC warning

Nintendo may not make a lot from Pokemon go / Pokemon

This is despite Apple announcing this week that the Pokemon Go app has achieved the accolade of being the most downloaded app ever in its first week.

The success of the app has meant that release into new markets has had to be staggered, to ensure that servers are able to cope with demand. The app has only just gone live in Nintendo’s native Japan, despite being live in the US, Australia and New Zealand already. Much of the rest of Asia is still eagerly awaiting the game’s launch.

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These headlines had helped to drive up Nintendo shares initially, with some reports suggesting it had added almost $20bn onto its market share. Its disclosure around how little it stands to profit from this has meant this has taken a hit, though Nintendo still stands in much better shape than before the game hit the app stores.

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