Skip to main content

Nintendo shares plummet as investors find out it doesn't make Pokémon Go

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.

47 Comments
  • Hahaha is it wrong that that's hilarious?
  • Nope, just shows how stupid some investors are!
  • I was confused that industry experts and co. were talking about Pokemon GO as though it was a paid app or something.
  • In app purchases were where they thought this would make them money. Not by buying that. Posted via the Android Central App
  • Some people are. Literally.
  • In app purchases won't matter - the point is that Ninentendo doesn't own Pokemon, let alone Pokemon GO. Pokemon is owned by a company called The Pokemon Company, and Nintendo has a 30% share of that company. Pokemon Go is a joint venture between Niantic and the Pokemon Company, which further dilutes Nintendo's share of revenue with anything Pokemon GO associated.
  • This exactly!
  • Only goes to show how stupid stockbrokers are right now and how you shouldn't trust the stock market to get a view of the economy of a country
  • Martinspire, LoL,. I bet you also believe , it's not fair for others to make $25 an hour while you flip burgers for $9 an hour. Once you get over the fact that wealth is attained by hard work and sometimes taking huge risks, you may then share in that wealth. Until then , continue on with your life as usual and keep voting for Democrats. Let us know in a few years how that works out for you. Better let you go, gotta get back to my pina colada!!!!!! Good day sir- Posted via the Android Central App
  • Where did that come from? None of what Martin said should have triggered your rant. Posted via the Android Central App
  • The king of non sequiturs. Nothing you said had anything to do with his observation.
  • You seriously need to take a chill pill or get yourself checked out lol
  • Your a Herp Derp. Nothing he said related to anything in your obnoxious Trumptian Rant Posted via the Android Central App
  • What's a hero derp Posted via the Android Central App
  • What makes you think hard with creates wealth. Sir Philip Green paid himself over £300 million for running a company, BHS, that has gone into receivership with debts of £521 million. What makes these over paid bosses think they are worth even a fraction of the salary they award themselves. Posted via the Android Central App
  • You just embarrassed yourself under the ground. Sheesh, pal...that was tough to watch. Posted via the Android Central App
  • I don't even watch professional sports, so I don't know what you're talking about. Posted via the Android Central App
  • That statement shows your limited knowledge of the industry you are seek to defame. Stock brokers do not "buy" anything. They are selling brokerage services, the ability to buy or sell financial instruments. I trust the market more than pundits or politicians. The Markets are where people put their money on the line, not just empty words. The markets are forward looking, not the current state,
    If the markets are not a good indicator, what is?
  • The OP is right. The stock market is a game that has little to do with real value. It's based on predicting what the other guy thinks the market is going to do. It's legalized gambling. That is all.
  • Gambling isn't illegal. So it's just gambling. Posted via the Android Central App
  • It's only gambling if you gamble Posted via Techmology
  • Gambling is illegal in some forms and locations.
  • Please research expected return as it applies to investing and gambling and get back to me. Then research Capital markets and Capital structure and Business operations, then you may wish to rethink your position.. Int 50 years when you want to retire revisit this statement when you are retired or still working. No matter the way you choose to save it is all involved in the investment of the capital markets. Ignorance is all you are displaying.
  • People do use financial instruments to gamble. Options, currency, and even leveraged stock. And the markets are rigged & manipulated by flash speed traders buying access. The financial markets aren't a real representation of what they are supposed to be Posted via the Android Central App
  • Yes, people do use them for their gambling fix. But most are used in perfectly sound investment strategies. You are talking about retail investing. Those markets do not exist without institutional "investors" to maintain liquidity. You want to go see a rigged market, go look at China, Russia, even the European markets. The US markets, wile not perfect, are the most transparent and liquid in the world. I know you read a book, by a famous guy who likes to write about baseball. Speed trading does shave off fractions of a penny from me, but it is a fair price to pay for liquidity. i don't know how you save but I promise you will fail unless you acknowledge the risk of investing and learn to navigate the waters of US capital markets. Edit: BTW. A market represents the price someone is willing to pay, not the value. IF you are smart enough you can recognize the difference an profit from the difference because over time they will line up.
  • No. Not at all. The MBS bubble was a perfect example of where the market goes astray. That's just the most egregious example. It happens all the time. Again, it's not about what a company will do in the future, it's what you think the other guy thinks the stock will do in the future. These are two different things. Company P&L and other metrics are only one factor influencing the buyers and sellers that will set the price. The OP was correct, if inelegant in his description.
  • As a gamer who has been following Nintendo for a long time, I know Nintendo's intent with their mobile games, and that is to strengthen their brand names and the familiarity with its game characters. That equates to possible sales increase in their consoles and its games. The little profit from the mobile games that Nintendo gets is just a bonus. Pokémon games on the 3DS are now selling better due to this. Posted via the Android Central App
  • Agree. This is the time to hold those shares as it shows the world that ppl want Nintendo. I think this game, despite its limited financial effect on Nintendo is a jumping off point for them. Posted via the Android Central App
  • And I have a feeling....it's only going to get better once the NX is released! Just imagine Mario Kart and Battlefield 1 playing on the same console! I could be dreaming, but from what's been reported the NX has the power to do it.
  • I highly doubt it. There is so much rumor around the NX. Even that it will be running a Mobile OS, which would limit 3rd party support for AAA games Posted via the Android Central App
  • I expect nintendo's share to drop in similar fashion after the release of the NX, bc it will undoubtedly underwhem Posted via the Android Central App
  • I don't know. The NX might be awesome. Posted via the Android Central App (Motorola Nexus 6 - US Cellular)
  • I want to eat my words truly. But the rumors about the system and what the company said after E3 don't give me any confidence Posted via the Android Central App
  • Nintendo can be hard-headed sometimes. Posted via the Android Central App
  • I still don't understand why Nintendo is sitting on top of treasure trove of old games from NES, Super Nintendo, 64, and don't port them to Android. The games are there and can run on almost all devices right now. for $5 a piece and 100's of great titles they could make a killing with 1.5 billion Android users. Need to open up their ecosystem. I bet re-releasing Goldeneye with multiplayer would make a killing and that's just one game. It's nostalgic for adults and great for kids.
  • Which way did he go George, which way did he go Posted via the Android Central App
  • I don't think Nintendo ever developed any of the Pokemon games did they? Posted via the Android Central App (Motorola Nexus 6 - US Cellular)
  • But they had a hold on the platform they were released in (not sure if they developed them or not). Here, they don't make any of the mobile phones this is installed so they don't get a 'platform' cut, like they do with consoles.
  • They own a third of pokemon, the other 2/3 are owned by 2 Japanese companies. Posted via the Android Central App
  • But that revenue doesn't flow to Nintendo. It's all "paper profit" by stock prices Posted via the Android Central App
  • Nintendo has never developed any Pokemon title. They have only helped Game Freak, to a small degree, during the original development.
  • Well, duh!
  • Lol, called it! Posted via Techmology
  • Idiots
  • You'd think investors would do a little more research before pumping their money into something... and by research I mean a simple google search.
  • Shares still up 60% kind of makes "plummet" seem like a click bait. Posted via the Android Central App
  • Nope,it's reporting a large drop that is still ongoing.The facts don't change whether you're a Nintendo fan or not. Posted via the Android Central App