Following investors’ realisation that Nintendo does not actually develop or entirely own the popular mobile game Pokemon Go, the company’s stock, which had skyrocketed in recent months, plummeted Monday.
Nintendo explained on Friday that their expected earnings from the widely popular mobile game would be “limited.” With Nintendo only owning 32% of The Pokemon Co. and Pokemon Go being created by developer Niantic Labs, the profits for Nintendo from the game would actually not be quite as substantial as many investors seemed to think it would.
Despite the drop in stock prices, Pokemon Go has still massively revitalised the Nintendo brand and increased the initial value of their stock by approximately 60%, which, prior to the game’s release, was not performing very successfully. Nintendo is set to release their first quarter earnings on Wednesday, which will truly prove whether or not the success of Pokemon Go has in fact increased their overall earnings or whether the game will simply act as an extremely interactive marketing tool allowing Nintendo to cash in on players’ enthusiasm for the Pokemon franchise.
Pokemon Go has dominated headlines since its release in ways completely unexpected. There were stories of users being stabbed while playing the game, Saudi Arabian imams declaring the game haram, three girls coming across a dead body while playing the game, and a former Marine crashing into a tree while playing the game. Whether or not all of the controversy surrounding Pokemon Go will work in Nintendo’s favour has yet to be seen, but perhaps Wednesday’s quarterly review will shed some light on the matter.
Lucas Nolan is a Journalism and Media student at Dublin Business School and a regular contributor to Breitbart Tech. He can be contacted via Twitter here: @LucasNolan_