Nintendo’s Market Value Suffers as Investors find out that it only owns a part of the Pokémon Franchise

Image: Getty Images

Image: Getty Images

Ever since the release of Pokémon Go, a hit augmented reality mobile game, Nintendo’s market value has more than doubled in matter of less than a month. Despite the fact that the game is developed by an entirely different company, Niantic, the investors were mistaken to think that Nintendo was the real publisher. This is mainly because Nintendo was the publisher of all the original Pokémon games on Game Boy, so it’s natural to just assume that Pokémon Go was published by the same company as well.

People believe that the rising market value of the company and the ever-rising popularity of Pokémon Go would mean big money for Nintendo. However, a statement release by Nintendo on Friday says otherwise. The company makes clear in the statement that it only owns a 32% share of the Pokémon franchise, so the profit from the hit game would only be to a ‘limited’ extent.

There isn’t anything new in the statement, since the App Store and Google Play Store do make it very clear that the publisher of Pokémon Go is Niantic, not Nintendo. Apparently, this was news for the investors in the company’s stock, since its market value dropped by a staggering 18 percent on Monday. Keep in mind that this is the maximum a stock can fall in one day on the Tokyo Stock Exchange, leaving the possibility that the value might fall further on Tuesday. So Nintendo just lost about $6.7 billion in its market value, and it might even lose more!

Things still aren’t that bad for Nintendo. Even after the drop on Monday, the company’s market value is still about 65 percent higher than it was prior to the launch of Pokémon Go. Given that the stock doesn’t fall any further, Nintendo will have a lot to brag about in its upcoming quarterly earnings report.

Like us on Facebook for more updates!

You may also like...