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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
That means Nintendo’s affiliate, Pokemon Company – of which it owns a one-third stake – would get only licensing fees.<\/p>\n
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.<\/p>\n
“Taking the current situation into consideration, the company is not modifying the consolidated financial forecast for now,” Nintendo said in a stock filing.<\/p>\n