Pokemon Go, Nintendo’s much awaited game for smartphones, was only released about a week ago and its already making strides; not only in terms of social media buzz but also when it comes to money. After the game launched on July 6, Nintendo’s share value rose up by around 9.3% and on Monday, the share’s saw a huge increase of 24.52% which is the highest one-day surge for Nintendo since 1983. This raise in the share price added a total of $7.5 billion in Nintendo’s market value.
These numbers become even more surprising when we notice that the Pokemon GO is only launched in USA, Australia, and New Zealand as yet and it has already been installed on 5% of the total Android devices in USA. The game is yet to be launched in other market including Japan which is a considered world’s larger market for any type of video games.
It is also to be noted here that Nintendo is not the only owner of the Pokemon GO. The game is actually created by Niantic, an augmented reality game maker spun off from Google in October 2015, along with collaboration from Pokémon Company. However, Nintendo is an investor in both the entities.
Pokemon GO is a free game available on both iOS and Android. The only revenue stream is in-app purchases which, according to CNBC, generated $3.9 million to $4.9 million to its first day. However, according to some financial analysts, the game has to generate monthly revenue of about $140 million to $196 million to bring considerably financial benefits for Nintendo.