The launch of Pokémon Go has been a sure-fire success, so much so that Investors have been piling their cash into Nintendo, despite a number of articles across the web stating that Nintendo has very little to do with the actual game. Now, thanks to an investor call, Nintendo’s stocks have dropped dramatically.
Last week news came in that Nintendo’s stock pricing had skyrocketed by as much as 50% as the launch of Pokémon Go continued to dominate the globe. It seems investors just assumed that due to the game being related to Pokémon, Nintendo would benefit from the launch, and in a way, it did.
However, Nintendo held a financial briefing on Friday and broke the news to investors that since the app wasn’t owned by Nintendo, it gains very little profit from the title. Well, as you’d expect, investors weren’t too happy and have started selling off those shares causing Nintendo’s stock to drop by 17.7%.
“Taking the current situation into consideration, the company is not modifying the consolidated financial forecast for now,” Nintendo said. In short, despite Pokémon Go’s huge success, the company didn’t expect any change in profits.
Pokémon Go is actually owned by ex-Google-created company Niantic Labs. who licenced the Pokémon brand from The Pokémon Company, of which Nintendo owns a third of the share of. So while Nintendo may gain something from the licencing of the Pokémon brand, it’s difficult to say exactly how much of that cash will actually make its way into Nintendo’s pockets.
Of course, with the sale of Pokémon merchandise on the rise, as well as increased sales from Pokémon Alpha Sapphire and Omega Ruby, as well as previous titles Pokémon X and Y, Nintendo does profit. Not to mention the upcoming release of Pokémon Sun & Moon as well as the upcoming Fire Emblem and Animal Crossing mobile games in the works.