Not sure where I read it, but I recall it had to do with the attack in Nice and making sure the situation is stable before they bring the masses outside
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Pokemon GO message from the creators, no change in Nintendo forecast
- Thread starter Chaos17
- Start date
I have a preorder. :<
Don't understand why anyone thought making their IP available for license entitled Nintendo (through TPC even) to a major cut when Niantic is doing all the work. Licensing deals across several industries are almost never like that. Nintendo isn't special. I'm sure Nintendo is more than happy Niantic got so many people to finally pay attention to Pokemon again though. What they did for Nintendo is probably worth way more than the investment they made in Niantic initially.
That was only a rumor made by IGN France but everyone here even on Gaf though it so it was just a logical assumption but the truth is we've 0 official words. None had even Japan untl Mc Donald steped up mainly. Japan go trolled twice because of some english rumors just like France.
Ah, thanks for the clarification. I wasn't sure if it was verified. It'd make sense, though.
I'm 100% sure that's the reason, official confirmation or not.
I think it's fine that Nintendo addressed this because I bet there were some investors that thought they owned all of the Pokémon franchise lol.
I also think it's way too early to modify forecasts after just about two weeks of the game's release. They'll clearly have to do it if the game continues to be successful over the upcoming months and/or after the release of Pokémon Sun/Moon (which could potentially sell more due to Pokémon GO, I guess).
I also think it's way too early to modify forecasts after just about two weeks of the game's release. They'll clearly have to do it if the game continues to be successful over the upcoming months and/or after the release of Pokémon Sun/Moon (which could potentially sell more due to Pokémon GO, I guess).
But it didn't cost a penny to Nintendo... ;]
Sheriff_Battlesnake
Banned
Company.
you do realise not everyone lives in a big city with dozens of pokestops right?
Gamer @ Heart
Member
What? Of course not. They said they have no plans to update their earnings forecast.
People need to realize the pokemon company and creature Inc making money is not 1:1 Nintendo making money, so they are telling people subtly not to assume anything as far as revenue.
I don't think anyone who has posted here understands why what they're saying means what it means.
Specifically, Nintendo says they have the Pokemon Company on their balance sheet under the equity ownership accounting method. when you do that, that means that Nintendo can't actually recognize the revenue from Pokemon Company directly under N's income statement because it is not their income. Instead Pokemon company will hold said cash on their books, so that Nintendo doesn't have to then pay taxes on the dividends received from Pokemon a Company by monetizing it. This way their investment grows in value but with no tax implications.
This doesn't mean that Pokemon company is not making bank on Pokemon Go, they probably are, it just means that the revenue will largely stay on Pokemon Company's books.
I think there is like some deferred tax liability stuff you will see on N's books... But I can't remember explicitly.
Specifically, Nintendo says they have the Pokemon Company on their balance sheet under the equity ownership accounting method. when you do that, that means that Nintendo can't actually recognize the revenue from Pokemon Company directly under N's income statement because it is not their income. Instead Pokemon company will hold said cash on their books, so that Nintendo doesn't have to then pay taxes on the dividends received from Pokemon a Company by monetizing it. This way their investment grows in value but with no tax implications.
This doesn't mean that Pokemon company is not making bank on Pokemon Go, they probably are, it just means that the revenue will largely stay on Pokemon Company's books.
I think there is like some deferred tax liability stuff you will see on N's books... But I can't remember explicitly.
Miniboss1232
Member
That, or $35 million in revenue is still a fraction of the $588 million in revenue that Pokemon X & Y made. There's still a long way to go before Pokemon GO makes that kind of money.
It wasn't just a simple licensing. Money was invested as well.
Yes, that seems most likely.
I thought under the equity method the proportionalised income has to be recognised in the investor's income statement AND balance sheet as well? Otherwise how would you balance your BS?
Every digital store takes a 30% cut of the sale price of anything sold on that store. That's the standard industry practice.
Ah gotcha thanks. I'm at work so I just had to skim it. Makes sense.
lensoftruth
Member
Not really, Nintendo get a sizeable return and exclusive rights to the biggest IP out there now.
If I'm not mistaken, it was developped by Game Freaks and Creatures and produced by Nintendo.
The Pokemon Company was created a couple years later when they opened the first Pokemon Shop, so that Nintendo, Game Freaks and Creatures could develop the IP more easily.
Pokemaniac
Member
The IP ownership has always been a mostly even split between Game Freak (the main developers), Creatures Inc., and Nintendo. There are several complicating factors, like Nintendo owning all the trademarks in at least one of the regions, but the basic ownership has always been a 3-way split.
Buuut, since Creatures inc. is a subsidiary of Nintendo, Nintendo effectively has a 66% controlling share of the IP.
Pokemaniac
Member
No they're not. Nintendo may have some stake in Creatures (pretty sure it's not a controlling one), but they are not a subsidiary.