Oh Shit – Nintendo Loses $6.7 Billion As It Turn
Post# of 63836
Posted On: 07/27/2016 5:33:54 PM
Oh Shit – Nintendo Loses $6.7 Billion As It Turns Out They Won’t Be Making Money From Pokemon Go
[url=]You may or may not have been paying attention to all things Pokemon Go-related recently, but the headlines said it all: Nintendo’s stocks had risen a ridiculous amount, more than doubling the company’s value from before the game was released.[/url]
But Pokemon Go, in fact, has been released by San Fran-based company Niantic – and it has only now been realised by investors that although Nintendo is the OG publisher of Pokemon games on Game Boy, they’re not exactly reaping the rewards of Niantic’s Pokemon Go.
Mashable continues:
In a statement Friday, Nintendo said the impact of Pokémon Go on its finances will be “limited,” explaining that it only owns 32 percent of the Pokémon Company, which owns the intellectual property rights for the Pokémon franchise.
Furthermore, even though Nintendo plans to start selling a game-related peripheral under the name Pokémon Go Plus, the financial impact from that operation has already been factored into the company’s previously announced earnings forecast.
None of this is really new, but it appears to be news to investors, which initiated a frantic selling session Monday, with Nintendo’s stock price falling 18 percent (the maximum a stock can drop in one day on the Tokyo stock exchange), wiping some $6.7 billion in market value.
But despite all that, things are still looking pretty sound for the company.
The company’s stock price is some 65 percent higher than it was prior to the Pokémon Go launch on July 6, and its quarterly earnings, which will be announced this Wednesday, are forecasted to be significantly better than last year according to Bloomberg.
[url=]You may or may not have been paying attention to all things Pokemon Go-related recently, but the headlines said it all: Nintendo’s stocks had risen a ridiculous amount, more than doubling the company’s value from before the game was released.[/url]
But Pokemon Go, in fact, has been released by San Fran-based company Niantic – and it has only now been realised by investors that although Nintendo is the OG publisher of Pokemon games on Game Boy, they’re not exactly reaping the rewards of Niantic’s Pokemon Go.
Mashable continues:
In a statement Friday, Nintendo said the impact of Pokémon Go on its finances will be “limited,” explaining that it only owns 32 percent of the Pokémon Company, which owns the intellectual property rights for the Pokémon franchise.
Furthermore, even though Nintendo plans to start selling a game-related peripheral under the name Pokémon Go Plus, the financial impact from that operation has already been factored into the company’s previously announced earnings forecast.
None of this is really new, but it appears to be news to investors, which initiated a frantic selling session Monday, with Nintendo’s stock price falling 18 percent (the maximum a stock can drop in one day on the Tokyo stock exchange), wiping some $6.7 billion in market value.
But despite all that, things are still looking pretty sound for the company.
The company’s stock price is some 65 percent higher than it was prior to the Pokémon Go launch on July 6, and its quarterly earnings, which will be announced this Wednesday, are forecasted to be significantly better than last year according to Bloomberg.
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