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Pokemon GO – message from the creators, no change in Nintendo forecast

Chaos17

Member
pokemon-go-message.jpg

Source: http://nintendoeverything.com/pokemon-go-message-from-the-creators-no-change-in-nintendo-forecast/

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Pokemon GO is now available in Japan. To celebrate, Niantic’s John Hanke and Game Freak’s Junichi Masuda shared a few words. Most of the message is from Hanke, though Masuda’s comments are unfortunately available in Japanese only.

In any case, here’s the video: https://www.youtube.com/watch?v=hdpYBEJMfy0

Aside from the video, Nintendo issued a notice on its investor’s website about its forecast in response to Pokemon GO. Essentially, things are staying the same from now. You can read the full message below.

Niantic, Inc., a U.S.-based company, has begun to distribute the “Pokémon GO” application for smart devices in Japan today.

This mobile game application is developed and distributed by Niantic, Inc. The Pokémon Company, which is an affiliated company of Nintendo Co., Ltd. (the “Company”), holds the ownership rights to Pokémon. The Pokémon Company is going to receive a licensing fee as well as compensation for collaboration in the development and operations of the application.

The Company owns 32% of the voting power of The Pokémon Company. The Pokémon Company is the Company’s affiliated company, accounted for by using the equity method. Because of this accounting scheme, the income reflected on the Company’s consolidated business results is limited.

Also, a peripheral device for use with the application, “Pokémon GO Plus,” which will be produced and distributed by the Company, is scheduled for release. All of the above are reflected in the financial forecast ending March 31, 2017 as set forth on April 27, 2016.

Taking the current situation into consideration, the Company is not modifying the consolidated financial forecast for now. The Company will make a timely disclosure when the Company needs to modify its financial forecasts.
 
Interested to see what type of conversion they are getting from the app.

I would love to hear the speculation as to what percentage of whales they are getting in the early days.

I haven't spent a penny...... yet.
 

inner-G

Banned
Interested to see what type of conversion they are getting from the app.

I would love to hear the speculation as to what percentage of whales they are getting in the early days.

I haven't spent a penny...... yet.
I bought poke balls once, and it felt like such a waste that I probably won't spend any more.
 
Interested to see what type of conversion they are getting from the app.

I would love to hear the speculation as to what percentage of whales they are getting in the early days.

I haven't spent a penny...... yet.

I almost bought some Pokeballs after running out, but then I realized that catching more Pidgeys to evolve and level up (15 atm) just makes it harder to catch Pidgeys, since they take so many Pokeballs and keep escaping. They gave it a good shot, but I can't justify spending money on this as a non-city dweller.
 
I bought poke balls once, and it felt like such a waste that I probably won't spend any more.

I would never buy those. I get billions for free at pokestops. It's like paying for napkins when you go to McDonald's. Incense, lures and lucky eggs tho? GIVE IT TO ME
 

True Fire

Member
Interested to see what type of conversion they are getting from the app.

I would love to hear the speculation as to what percentage of whales they are getting in the early days.

I haven't spent a penny...... yet.

There's no gambling model. Maybe if they add an item gatcha for evolution items and Mega Stones, but until then they're not going to be getting any whales.
 

Chaos17

Member
Any news on an update for PGO? Trading and stuff

Not yet, Niantics have to launch in more countries and stabilises servers along the way and patch 3 steps "bug". So I will say we will need maybe 1 more week unless Niantic had suddenly a lot of man power to help them (rumor says they're less than 50).
 

massoluk

Banned
The Pokémon Company is going to receive a licensing fee as well as compensation for collaboration in the development and operations of the application.

That it? Sounds like Niantic is going to made out like a bandit if this is way over their expection then? Best deal ever in videogame industry?
 

specdot

Member
Sooo, why isn't there an add-on to Apple Watch/Android Wear? They could charge for that. I could see people buying that.
 

Chaos17

Member

AdanVC

Member
So that's why Nintendo's stock decreased drastically today?? Niantic is going to be the one swimming in money the most. But still word of mouth have always been Pokémon = Nintendo and that for sure will help once Pokemon Moon/Sun launches.
 

Dishwalla

Banned
Not yet, Niantics have to launch in more countries and stabilises servers along the way and patch 3 steps "bug". So I will say we will need maybe 1 more week unless Niantic had suddenly a lot of man power to help them (rumor says they're less than 50).

Man they should be hiring more people, bet there's a ton of folks that would jump at that opportunity now with the killing the company is making.
 

EhoaVash

Member
Blergh the split ownership of Pokemon confuses the fuck out of me

You have nintendo, Gamefreak, and creatures Inc ....each own 30@% ish of the franchise, but then Nintendo themselves own Creatures Inc right? So does that make it 60ish percentage ownership? Lol confusing.

If only Nintendo bought gamefreak, at the start, they could control the franchise with a iron fist
 
Blergh the split ownership of Pokemon confuses the fuck out of me

You have nintendo, Gamefreak, and creatures Inc ....each own 30@% ish of the franchise, but then Nintendo themselves own Creatures Inc right? So does that make it 60ish percentage ownership? Lol confusing.

If only Nintendo bought gamefreak, at the start, they could control the franchise with a iron fist

i think they have stakes in Creatures Inc not full ownership, they never disclosed how big those stakes are.
 

yllekz

Banned
Really wish they would have explained the downtime and why so many things suck in the game. The 5 hour outage a few days ago with no communication whatsoever is unacceptable.
 

dave is ok

aztek is ok
There's no gambling model. Maybe if they add an item gatcha for evolution items and Mega Stones, but until then they're not going to be getting any whales.
Every popular F2P game has whales.

Theres probably some dude who spent thousands on pokeballs and bag upgrades just because.
 
There's no gambling model. Maybe if they add an item gatcha for evolution items and Mega Stones, but until then they're not going to be getting any whales.

A "whale" doesn't have to be someone who spends thousands and thousands. I spent £79.99 on the largest Pokecoin pack, and that probably makes me a whale.
 

Alrus

Member
So if I understand this correctly, Nintendo doesn't think the game will have any impact on their finances? I highly doubt the licensing agreement would be that advantageous to Niantic, seems kind of strange to me unless I completely misunderstood the statement.

i think they have stakes in Creatures Inc not full ownership, they never disclosed how big those stakes are.

I think I read they owned 35% of Creatures somewhere.
 
So if I understand this correctly, Nintendo doesn't think the game will have any impact on their finances? I highly doubt the licensing agreement would be that advantageous to Niantic, seems kind of strange to me unless I completely misunderstood the statement.



I think I read they owned 35% of Creatures somewhere.

It's possible that they just don't want to make any projections until it's been out for longer and they have more of a handle on how it's performing. I dunno.
 
So if I understand this correctly, Nintendo doesn't think the game will have any impact on their finances? I highly doubt the licensing agreement would be that advantageous to Niantic, seems kind of strange to me unless I completely misunderstood the statement.
.

they are probably just being cautious
 
So if I understand this correctly, Nintendo doesn't think the game will have any impact on their finances? I highly doubt the licensing agreement would be that advantageous to Niantic, seems kind of strange to me unless I completely misunderstood the statement.



I think I read they owned 35% of Creatures somewhere.
Its seems like they're saying that the profit they've made from Pokemon won't be reflected in their financial results due to the way they account for assets from investments.
 
I would never buy those. I get billions for free at pokestops. It's like paying for napkins when you go to McDonald's. Incense, lures and lucky eggs tho? GIVE IT TO ME

I think I might buy some incubators at least. Maybe some incense, but I haven't had much luck using it so far.
 

Akki

Member
This is just confusing.

Nintendo is using the equity method which is an accounting technique used to assess the profits earned by their investments in other companies. The firm reports the income earned on the investment on its income statement and the reported value is based on the firm's share of the company assets. The reported profit is proportional to the size of the equity investment. This is the standard technique used when one company has significant influence over another. http://www.investopedia.com/terms/e/equitymethod.asp

Basically if the Pokemon Company has a 100 million $ income Nintendo would report earnings of 32 million $. But keep in mind Nintendo has also invested in Niantic and Creatures Inc (the accounting method could be different here).

I´m not an accounting expert (I probably should know better, lol), but their reasoning sounds strange since a profit from the Pokemon Company is reflected in Nintendo´s balance sheet. This means that either the Pokemon Company revenue stream is lower than expected because Google takes a higher cut for using google maps and Niantic gets more because they are using the Ingess data/technology or simply Nintendo wants to be careful and not prematurely change their forecast because Pokemon Go can stil fade.
 

Pokemaniac

Member
Since when does Google take a 30% cut of everything? Serious question. I know Apple does, but I didn't think Google did.

Pretty much everyone who runs a digital storefront takes a cut, with 30% being the typical amount. It's what pays for the operating costs.
 
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