Pokémon GO has been out for two weeks now, and just as we thought that Nintendo were making millions off the game, it seems that it is actually the complete opposite. As much as Nintendo owns Pokémon GO, the company only owns 32% of the Pokémon Company, the actually creators behind the Pokémon franchise.
RELATED: Pokémon GO South Africa Starter Tips
All this means, is that Nintendo is not profiting as much as we initially thought it was. Even though the company is releasing branded merchandise and the Pokémon GO Plus tracker, this will take a while to make an impact on its financial earnings forecast. When investors realised how little stock Nintendo owned of The Pokémon Company, investors started selling, which caused Nintendo’s stock price to drop 18%, lowering its market value.
Still, with all this negative news, there is still a good side to the Pokémon GO frenzy, as Nintendo’s stock price is 65% higher than it was before the launch of the popular mobile game. The mobile game still has not been released in China, Africa, and some EU countries. The mobile game just released in Japan and Hong Kong. As we see the new mobile game release worldwide, we can expect Nintendo to slowly gain momentum in the market again. The company also has its upcoming NX console planned for release sometime next year. The company recently announced the release of a mini NES.
We’re still patiently awaiting the official local release of the new mobile game from Nintendo. Be sure to check out our Pokémon GO hub if you’re keen to get ahead of the game before its official release in South Africa.
Drop us a comment and let us know if you’re excited to start catching Pokémon once the game officially releases in South Africa.