Pokemon Go is a huge success, but after Nintendo recently admitted it won’t directly profit from the augmented reality game, this led to a loss of $6.7 billion in Nintendo’s market value on Monday.
Nintendo’s market value rose by $7.5 billion on July 11th, just after Pokemon Go went public and became a hit across the globe. In fact, since its launch, Pokemon Go has added nearly $12 billion to Nintendo’s market value, so today’s dip isn’t a total disaster for the company.
Nintendo published a letter to investors on July 22nd clearing things up as to the company’s involvement in Pokemon Go: Basically, it didn’t develop or publish the game. Instead, Nintendo has a 32 percent stake in The Pokemon Company, the business that markets and licenses the Pokemon franchise to outside developers. The Pokemon Company will receive licensing fees and compensation for collaborating with developer Niantic on Pokemon Go, and Nintendo will see just a small slice of that revenue.
And so on Monday, the first trading day after its letter went public, Nintendo’s stock fell as much as 18 percent. This is the steepest hit to the company’s shares since 1990. Don’t worry about Nintendo though. They’ll be okay and are still making money.
Source EngadgetFiled Under: Gaming News