It took everyone long enough! For those that don’t know, Nintendo actually has very little to do with the recent success of Pokémon GO. The game was developed by Niantic, published by The Pokémon Company, and received little more than a blessing from Nintendo.
Most gamers know this, but investors obviously did not. Nintendo’s recent record-setting highs are now starting to wane as those who purchased in the mad rush start to realize their folly. Shares of Nintendo closed down 17.7 percent down this past week after doubling since the game’s launch.
Good for Nintendo too, who only took two two weeks to inform buyers. Nintendo said it doesn’t expect to bring in that much more profit from Pokémon GO.
Taking the current situation into consideration, the company is not modifying the consolidated financial forecast for now.
To spell out the situation, Nintendo owns one-third of The Pokémon Company, and it will only bring in a fraction of what Pokémon GO makes. After licensing fees and other charges, Nintendo’s benefit from this is minimal at best. The statement was strong enough to scare off buyers who realized the goof.
And here I was thinking that I had missed something. I mean, surely these investors know a lot more about the market than I do. Why was everyone so crazy for Nintendo stock when it made so little money off the actual game itself?