Sat. Feb 4th, 2023
These gentlemen need no introduction these days.

These gentlemen need no introduction these days.

Andrew Cunningham

Shares in Nintendo crashed through the floor late Friday after the company admitted the financial impact of pokemon go would be limited.

The success of the mobile game would not have much effect on its own profits, Nintendo warned after the market closed in Japan.

Stocks tanked on the Nikkei index when trading resumed on Monday, with stocks down 17.7 percent at the end of the game, or ¥5,000 – reportedly the biggest drop since October 1990.

Shares of the 127-year-old Japanese gaming company had nearly doubled in the weeks since the augmented reality phenomenon gripped gamers around the world before admitting on Friday that despite the game’s success, Nintendo didn’t expect to raise its earnings forecasts to adjust above.

pokemon go was created by Niantic, an American company based in San Francisco, and licensed by the Pokemon Company, a subsidiary in which Nintendo has a 32 percent interest.

It also owns an undisclosed part of Niantic, which was originally incubated by Google before launching on its own. Kyoto-based Nintendo will release its first-quarter results this week and, as some market watchers note, it’s still up 60 percent since the app’s release, adding around £10bn (~$13.1bn) to its market value.

“The market has overreacted to Nintendo’s statement,” Macquarie Securities Group senior analyst David Gibson told Reuters. “I believe that Pokemon Go will be important to the company’s revenue given the current trends for the game.”

pokemon go will be released in phases around the world. It broke records in Japan within days of its release there on July 22, when it reached 10 million downloads in just one day. No worldwide download figures have been reported since the game was released in Asia (except in China, where it is banned).

And while some reviewers believe the pokemon go app in its current form may not have a long lifespan, Niantic apparently has plans to develop the game, both with more Pokemon and significant gameplay additions.

Company boss John Hanke told a panel at Comic Con that: “Beyond first generation [of Pokemon], there are some others that may find their way into our universe. We look forward to finding interesting ways to make that happen in the months and years to come.”

Frame image by Andrew Cunningham

By akfire1

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