When the extremely popular Augmented Reality Pokémon app, Pokémon GO was released in Australia and New Zealand on July 6th, Nintendo’s share price was priced at ¥14,380 per share (around $183AUD per share), and by July 19th, the share price had doubled and then some to ¥31,770 per share (around $404AUD per share). However, as of today (July 26th), their share price have taken a tumble. Taking part in Nintendo’s shares today will set you back ¥22,365 per share (around $285AUD per share), only a week after their peak.
What’s the cause of this plummet? Well, Nintendo put out this statement on Friday after market’s close stating that the impact that Pokémon GO will have will be “limited” as Nintendo only holds 32% of The Pokémon Company, and that any revenue made from the Pokémon GO app and it’s device, the Pokémon GO Plus have already been accounded for in Nintendo’s financial forecast.
So, with this statment, current and potential investors in Nintendo’s stock realised that… well, Nintendo didn’t have anything to do with the Pokémon GO app at all. Pokémon GO was created by Niantic Labs in collabaration with The Pokémon Company. With this revalation, the stock dropped 18% in one day to ¥23,220 per share at close (around $296AUD per share); the maximum stock move allowed in one day, wiping out around ¥708 billion (just over $9 billion AUD).
The interesting thing in this whole situation is that when you look at the app, there isn’t a Nintendo logo or mention anywhere throughout and it was always a Niantic Labs and The Pokémon Company affiliation. Niantic Labs paid the licencing fee to include the original 151 (well, almost 151) Pokémon in their app. All this information was present at the beginning of this endevour. Perhaps this confusion happened becasue Nintendo had announced previously that they were starting their own mobile games, with Miitomo (already out, celebrated 10 million downloads and 1 million only after 3 days) and their upcoming Fire Emblem and Animal Crossing mobile titles.
Either way, maybe next time do a bit more research?