Nintendo Investors Realize It Doesn't Actually Make Pokémon Go, Shares Plummet

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How did Nintendo investors not realize this? This has been common knowledge since Pokemon Go was announced last year. Shares in Nintendo fell 18% today wiping out $6.7 billion in market value. Thankfully the Tokyo stock exchange rules prevent share prices from moving more than 18% in a single day or things could have been worse.

The correction comes after Pokemon Go’s release almost doubled Nintendo’s stock through Friday’s close, adding $17.6 billion in market capitalization. Nintendo is a shareholder in the game’s developer Niantic Inc. and Pokemon Co., but has an "effective economic stake" of just 13 percent in the app, according to an estimate by Macquarie Securities analyst David Gibson.
 
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IMO the fall is not wholly related to the expected monetization of Pokemon Go but I believe a large part of it was "wave riders" i.e. investors who now think the initial stock boost has peaked and sold of their gains.
 
Fundamentals are meaningless, propaganda and non-gaap earnings rule the day.
 
It shouldn't climb so much to begin with. Some investors probably made a huge profit from this. I don't think its illegal, but still...
 
My "guy" was pushing me to buy shares at the peak and today he told me he thinks it's going to go up again before the 27th. I am not so sure.
 
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My "guy" was pushing me to buy shares at the peak and today he told me he thinks it's going to go up again before the 27th. I am not so sure.
The "game" is threadbare as far as an actual game goes. It's a good collecting application, but as that, it can only last a couple of weeks for each player. Most will realize they can not collect more than a few (rural areas) or that the collecting of even simple Pokemon becomes userously expensive after level 20. It quickly becomes no fun.

There is nothing here to retain players beyond ~2 weeks. The App will continue to grow until all major territories are added, then will die off by Q3 and be the butt of jokes by Q4.

Nintendo, Niantic and the Pokemon rights holders really missed the boat here. They could have really created a revolutionary game, but instead we got a hollow app.
 
Well technically they own the Pokemon Company, soo...?

but the pokemon company didn't make the game either. The Pokémon company licensed out the rights for another company to use Pokémon in their game. Which I believe was a up front payment and then a cut of the money brought in.

so the pokemon company gets a cut of the money, but not all of it. Even then not all of that money goes back to Nintendo. So in the end Nintendo themselves make very little off of this game.
 
It's fun just to watch things sometimes.

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The "game" is threadbare as far as an actual game goes. It's a good collecting application, but as that, it can only last a couple of weeks for each player. Most will realize they can not collect more than a few (rural areas) or that the collecting of even simple Pokemon becomes userously expensive after level 20. It quickly becomes no fun.

There is nothing here to retain players beyond ~2 weeks. The App will continue to grow until all major territories are added, then will die off by Q3 and be the butt of jokes by Q4.

Nintendo, Niantic and the Pokemon rights holders really missed the boat here. They could have really created a revolutionary game, but instead we got a hollow app.

once they add trading that will help the game some. There are currently Pokémon that can only be captured in certain countries or cities. Adding more generations will help them also. Buy yeah I don't see it sticking around that long. Even so they made a good amount of money already so they aren't doing that horrible for the half ass release they put out.
 
They were making bank off this...they've already posted some revenue reports sooo i dunno.
 
once they add trading that will help the game some. There are currently Pokémon that can only be captured in certain countries or cities. Adding more generations will help them also. Buy yeah I don't see it sticking around that long. Even so they made a good amount of money already so they aren't doing that horrible for the half ass release they put out.

Not really. Trading will only speed players to the end of the "game". There is still no purpose to trading or collecting beyond getting them all.

The "only available in certain regions" Pokemon can be hatched from eggs in any region.

Collecting all the Pokemon will be an activity for the most die hard. That is not 95% of the customers that caused the rush on the stock. Most of the players of this game will drop off rapidly in the next few weeks. There is nothing to retain them and nothing that Niantic can add in a reasonable time to change that.

Invest how you like, but I see this game as a flash in the pan. Hopefully it does not sour people for when a real game comes along in this space.
 
Not really. Trading will only speed players to the end of the "game". There is still no purpose to trading or collecting beyond getting them all.

The "only available in certain regions" Pokemon can be hatched from eggs in any region.

Collecting all the Pokemon will be an activity for the most die hard. That is not 95% of the customers that caused the rush on the stock. Most of the players of this game will drop off rapidly in the next few weeks. There is nothing to retain them and nothing that Niantic can add in a reasonable time to change that.

Invest how you like, but I see this game as a flash in the pan. Hopefully it does not sour people for when a real game comes along in this space.

The good I see from this game of getting people to get out and walk around is really nice.
 
Well technically they own the Pokemon Company, soo...?

They own 32% of it. And a unknown percentage of Niantic. Some of the articles are clickbait too, The profit warning was that they don't expect the game to add that much to their profits so they aren't revising their outlook, not that they were going to lose money as some of the titles implied.
 
The good I see from this game of getting people to get out and walk around is really nice.

And I find it sad that they needed to be motivated by a virtual character to get off the lazy butts.

Where is the self motivation to get in better shape because well its good for your body and mind?
 
Just more evidence that the stock market is a joke filled with unscrupulous scalpers or stupid people. I think more of the second.
 
I don't see anyone would waste their time on this fad/gimmick b/c that's all this is... Remember tomagachis and gigapets? I rest my case
 
And I find it sad that they needed to be motivated by a virtual character to get off the lazy butts.

Where is the self motivation to get in better shape because well its good for your body and mind?

The same reason a rabbit will chase a carrot on a stick all day.

I own a rabbit. She is lazy as shit unless there is food involved. Then she is very motivated.
 
Damn, now that has got to hurt!

Not at all, this was a click bait article. Even with the drop the price was still way up from where it was. The stock was at about $17.50, it rose up to $37.70 before people realized this and it dropped down to about $25 - $26 and has stuck around that point. So yes there was a plummet however only after a massive jump, so it is still much higher than it was to start with. This was just market correct, not the stock hitting rock bottom. However that won't get as much people reading the headline to say that Nintendo stock up 150% after days of being up 200%.
 
Not at all, this was a click bait article. Even with the drop the price was still way up from where it was. The stock was at about $17.50, it rose up to $37.70 before people realized this and it dropped down to about $25 - $26 and has stuck around that point. So yes there was a plummet however only after a massive jump, so it is still much higher than it was to start with. This was just market correct, not the stock hitting rock bottom. However that won't get as much people reading the headline to say that Nintendo stock up 150% after days of being up 200%.

Their market has brakes built in though, so in an uncontrolled market, it could have crashed. We'll see next week what happens I guess. But lmao, they didn't make GO, wtf were they thinking?
 
Their market has brakes built in though, so in an uncontrolled market, it could have crashed. We'll see next week what happens I guess. But lmao, they didn't make GO, wtf were they thinking?

The market stopped it for a day. What is to stop people from pulling out now?

As for not making GO. Probably thinking that they don't own Pokémon so it would have been a tad odd.

Pokémon was created by Game Freaks, a 3rd party developer that was making games for multiple platforms. Pokémon just happen to be the one that took off. The Pokémon Company was created to deal with the popularity of the game and its rights which and is now the owner of the rights to Pokémon related items and is part owned by Nintendo, Game Freaks and Creatures (the makers of games such as Earth Bound). As such Nintendo can't themselves make a Pokémon game. Instead they would have to have The Pokémon Company make the game, or at the very least they would have to pay for rights to The Pokémon Company to make the game. Mix that with the fact that Nintendo doesn't develop mobile games it makes more sense that they would not make a game. Instead The Pokémon Company licensed the rights out. They get a cut of the profits. Then from that since Nintendo is part owner of The Pokémon Company they see partial split of that money with Game Freaks and Creatures getting their cuts also. I want to say that Nintendo is only 30% owner of The Pokémon Company so as such they see 30% of the money that they get.
 
What's your point? You own stock or something, trying to make it look fine?

It's embarrassing for them, if you can't see that well shrugs. Why not? It's like a car maker releasing a Halo product, reviving the company in the public conscientiousness, but then the truth comes out that it wasn't by their doing. This tarnishes their rep imo. It's hilarious, they don;t even make the stupid game themself!
 
The "game" is threadbare as far as an actual game goes. It's a good collecting application, but as that, it can only last a couple of weeks for each player. Most will realize they can not collect more than a few (rural areas) or that the collecting of even simple Pokemon becomes userously expensive after level 20. It quickly becomes no fun.

There is nothing here to retain players beyond ~2 weeks. The App will continue to grow until all major territories are added, then will die off by Q3 and be the butt of jokes by Q4.

Nintendo, Niantic and the Pokemon rights holders really missed the boat here. They could have really created a revolutionary game, but instead we got a hollow app.

Which is a missed opportunity. With the craze the app had (I see so many bars using Pokemon based ads now), they could have capitalized it by selling Pokemon locations. Imagine if every Starbucks became a hunting location, I figure many people would turn into customers in the time they were there. The capitalization on that in-person customer driving had huge potential. Advertising vehicles that get potential customers into locations are worth a lot. Should have cashed in on the mob behavior and drove consumerism.
 
Which is a missed opportunity. With the craze the app had (I see so many bars using Pokemon based ads now), they could have capitalized it by selling Pokemon locations. Imagine if every Starbucks became a hunting location, I figure many people would turn into customers in the time they were there. The capitalization on that in-person customer driving had huge potential. Advertising vehicles that get potential customers into locations are worth a lot. Should have cashed in on the mob behavior and drove consumerism.
That has been their plan all along. They are even launching with a McDonald's partnership in an Asian country (Japan?).

Niantic has been slow to roll things out and lunched the game with many aspects not ready at the right time. The game blew up very quickly and is now going to drop off a lot without a sustained game play experience to keep people engaged. It's like being on a swing set and you need to pump your legs at the right time to gain speed, but Niantic seems completely out of sequence, just swinging their legs wildly, if at all.
 
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