Nintendo Not As Financially Successful As Previously Thought
Early this month, there was a report that Nintendo’s share price had surged, making it an actual stock market fairy tale.
It appears it was all make-belief though, as last week, Nintendo released a finance briefing that said it doesn’t own rights to the app and that it would see limited profits from it.
Investors took notice of this realization. The stock increased by 50 percent and suddenly dropped nearly 18 percent after this information was made public.
Nintendo said the company it had not changed its consolidated forecast, which means it wasn’t going to make any changes in its profit even though Pokemon Go is a big success.
The Pokemon Go game app has become the most downloaded app to date, quickly hitting top-grossing charts.
What many people may or may not know is that Nintendo doesn’t have to do with Pokemon Go. Instead, Niantic, which is a U.S.-based company that was previously tied to Google. Niantic is also responsible for the AR game Ingress and is just licensed by The Pokemon Company.
One-third of The Pokemon Company is owned by Nintendo, and it will earn a bit of money from the licensing. How much the company earns is still to be determined.
There are other ways in which Nintendo can profit from its success. Both Fire Emblem and Animal Crossing are set for release this fall and is thought to be just as successful as Pokemon Go. Plus, the Pokemon Sun and Moon 3DS games are to set for release around the holiday season.