Pokemon Go is a no for Nintendo’s pockets
Shares in Nintendo dropped nearly 18% in Asian trade on Monday after the Japanese gaming group warned that the success of Pokemon Go’s would have a limited impact on its profits.
Nintendo shares dropped by 17.7% – $6.7 billion in market value – having more than doubled in value since the game debut on 6 July. Nintendo shares are still up 60% since the release of the game in early July.
But the Kyoto-based company warned in a statement late on Friday that the impact of the game’s success on its bottom line would be “limited” as it was developed by a US firm, Niantic.
That means Nintendo’s affiliate, Pokemon Company – of which it owns a one-third stake – would get only licensing fees.
The gaming company is due to report first-quarter results this week and said it does not plan to revise its earnings outlook for now.
“Taking the current situation into consideration, the company is not modifying the consolidated financial forecast for now,” Nintendo said in a stock filing.
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