Investors scrambled to buy Nintendo stock after the release of Pokémon Go saw millions of players worldwide fire up the app while out and about to catch their favorite Pokémon. Now shares in Nintendo have fallen after the company revealed the game would have limited impact on the bottom line. That's due to the game being developed by Niantic, which Nintendo holds a stake in alongside other companies.
However, as reported by the BBC, shares are still up considerably since Pokémon Go was released on mobile platforms.
"Even with the decline, Nintendo shares are still up 60% since the release of Pokemon Go on 6 July. The sharp drop was the biggest decline since October 1990, leaving the stock down by 5,000 yen - the maximum daily limit allowed. The gaming company is due to report first-quarter results this week and said it did not plan to revise its earnings outlook for now."
Some analysts believe investors have overreacted to Nintendo's statement, while others are clearly concerned about the room for growth with Nintendo's limited hold on Niantic and The Pokémon Company. That said, it's a strange move, especially when one considers this isn't revelation exactly news to anyone. The company's earnings report is expected to be released on Wednesday.