Nintendo share prices had reached sky high since Pokemon Go was released a few weeks back, The mobile app doubled their shares overnight, but Nintendo announced that this fantastic success is not as valuable as investors consider.
Nintendo puts out a statement later stating that Pokemon Go will have a “limited” impact on Nintendo’s profit. The company owns around 32% of The Pokemon Company and that the game and its Pokémon Go Plus smartwatch peripheral have been accounted for in the company’s current forecasts.
Pokemon Go is a joint collaboration between The Pokemon Company and Niantic Labs, the developer responsible for creating the AR cult success called Ingress. Later on the promulgation of this fact, the company’s share has dropped down 17% at one turn, representing close to $6.4 billion in value.
It seems that Nintendo’s huge rise in the stock market, which beat other major competitors like Sony in the market was because of a misjudged belief that Pokemon Go is fully Nintendo’s creation. What Nintendo said in its announcement on Friday was no fresh information — there isn’t a Nintendo logo to be found anywhere within Pokémon Go itself, and the status of the game’s ownership has been light since it was announced last year.
Things have been looking well, but only for so far, but it is known that Nintendo is working on other Mobile games and they hope these games become as popular as Pokemon Go.