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Nintendo Shares Plunge 17% After Saying Pokemon Go’s Impact Is Limited

crinale

Member
Was Nintendo legally obliged to state that impact of Pokemon Go is "limited"? Because if not, someone really fucked up.

In Japan it is rumored that it is actually Tokyo Stock Exchange itself who commanded Nintendo to give that IR or something..

And as for fuckups yeah I think it is investors who fucked up, not Nintendo, who is being just honest (seriously).
 

j-wood

Member
The real question from all this is, how much Nintendo hates themselves for not being more invested in the app, and how they were completely wrong about how to proceed with their properties, thinking people wouldn't eat up a good mobile app with their franchises.
 
Nintendo is a shareholder in the game’s developer Niantic Inc. and Pokemon Co., but has an "effective economic stake" of just 13 percent in the app. (Based on ana analyst estimate, mind you, though the Nintendo quote seems to somewhat confirm the range of the impact).
Sounds like less a comment on the success of Pokemon GO and more a comment on the fact that Nintendo isn't going to get much of the profit that the game makes (either that or the game is generating a lot less than expected... perhaps out of server expenses).

So Nintendo licensed the game to Niantic (perhaps for a large fee from Niantic) but possibly otherwise invested very little in the game/will receive very little profit from the game.

Either way it sounds like Nintendo's business involvement is a lot less than I would have thought for what I would have suspected would be more closely held.
 

Cocaloch

Member
The real question from all this is, how much Nintendo hates themselves for not being more invested in the app, and how they were completely wrong about how to proceed with their properties, thinking people wouldn't eat up a good mobile app with their franchises.

No one from Nintendo was saying mobile games wouldn't sell. They were worried about devaluing their IPs.
 

fr0st

Banned
Need PvP now. You can have all this Pokemon and not use it against other players for dome reason. I'd take a ranking system as well that scales with levels.
 
Huh didn't realize Nintendo had such a small stake. If it's "effectively" 13% then yeah the doubling of stock price was completely overblown.
 

Joni

Member
Nintendo might hold a very significant stake in The Pokémon Company, it is still a separate company. Most of the money will probably flow into the warchest of The Pokémon Company, not that of Nintendo.
 

2thepoint

Junior Member
A meteoric rise is bound to start dipping eventually.

But what a few weeks its been.

Can't wait to see what Nintendo does with NX.

My dreams of a fully fledged Pokemon RPG with online trading and battling etc is still going strong.
 

jayu26

Member
The guy who didn't want a stockholder backlash for not saying anything sooner.
There has to be better way of saying the same thing. Something like...

Pokemon Go is not a massive earner for us directly, but we are looking at ways to increase revenue from it's overnight success. Furthermore, we will soon introduce more apps for the mobile platforms.
 

Timeaisis

Member
Should've just said nothing. Besides, I doubt Nintendo went into this app to change it's financial fortunes. Pokemon Go is doing more for Nintendo's brand than anything else could right now. Think how many people care about Pokemon again. It's priceless. Revenue is just gravy.
 

Sorcerer

Member
So who makes majority of the money, and where can I buy their stocks?

I would guess The Pokemon Co. as they license Pokemon. Nintendo just has a stake in the company. Nintendo is only successful if the Pokemon Co. is successful first.
I would guess Niantic has to pay dearly to use the license unless they were commissioned specifically by the Pokemon Co. to make the game, but somehow I doubt that.
 
I knew it. That's what the Pokemon Company do, Pokemon. What I didn't get was why Nintendo stock was skyrocketing, which I thought proved me wrong. I figured investors knew more.

If Nintendo has a 13% stake in the game, and owns 33% of the Pokemon Company, does that really mean TPC get 40% and Ninantic 60%? 1/3 of 40 is 13.3.
 

Fredrik

Member
Huh?
And I just asked the other day in another thread why Nintendo would make so much money from Pokemon GO when it wasn't their game and people here had all kinds of detailed explanations and when Nintendo now says that they won't make much money from this people now say that it was already widely known and investors were crazy to think otherwise.
 

Jinkies

Member
The market is reflecting what many of us understood and accepted from the first weekend: this was a fun fad whose societal importance has been amplified greatly by social media.

I look forward to seeing threads here next Spring about someone in Alberta who successfully lost 80 pounds while playing. Until then, ta PokeGo.
 
Nintendo probably also knows (by using math) that Pokemon GO hasn't even made more in revenue than Pokemon X & Y did in their first weekend on sale.
 

Cocaloch

Member
I knew it. That's what the Pokemon Company do, Pokemon. What I didn't get was why Nintendo stock was skyrocketing, which I thought proved me wrong. I figured investors knew more.

If Nintendo has a 13% stake in the game, and owns 33% of the Pokemon Company, does that really mean TPC get 40% and Ninantic 60%? 1/3 of 40 is 13.3.

That number is pretty much just a guess.
 

Wag

Member
heres-what-happened-in-the-complex-commodity-trade-at-the-end-of-trading-places.jpg
 

crinale

Member
Huh?
And I just asked the other day in another thread why Nintendo would make so much money from Pokemon GO when it wasn't their game and people here had all kinds of detailed explanations and when Nintendo now says that they won't make much money from this people now say that it was already widely known and investors were crazy to think otherwise.

I remember gaffers clamoring they know Nintendo's cut is very big but I think they know better than Nintendo execs lol.
Anyway Nintendo will have financial report in two days so they better announce this NOW or else execs would get fried at the investor meeting. If Tokyo Stock Exchange guy advising is real then I think that really was an honest advice, to disclose it now rather than later.
 

Astral Dog

Member
No shit. How this app was worth 9 billion dollars to shareholders is fucking beyond me.

they only look for short term profit, if they see its not there they fly away like flies searching for rotten food, indeed how could it rise that far based on this one app is a wonder.
 

atr0cious

Member
Yea but how much did you have invested and at the same time afford to not cash out when the stock was speculated to dive?
I'm not talking about the stockholders that have insignificant sums invested, I'm talking about those bigger fish who had a lot to lose and panicked because of that.
It's not about what's affordable, it's that Nintendo hasn't done anything yet and the stocks are rising based on ignorance, so selling and then trying to hop back in when they do rise from their own games at a higher price is for fools. They're talking about being at wii levels in a couple years, I'll sell when I see that.
 
I knew it. That's what the Pokemon Company do, Pokemon. What I didn't get was why Nintendo stock was skyrocketing, which I thought proved me wrong. I figured investors knew more.

If Nintendo has a 13% stake in the game, and owns 33% of the Pokemon Company, does that really mean TPC get 40% and Ninantic 60%? 1/3 of 40 is 13.3.

30% of all IAPs go towards the market store.

IE: Apple and Google. So they're splitting from a base of 70%.
 
I knew it. That's what the Pokemon Company do, Pokemon. What I didn't get was why Nintendo stock was skyrocketing, which I thought proved me wrong. I figured investors knew more.

If Nintendo has a 13% stake in the game, and owns 33% of the Pokemon Company, does that really mean TPC get 40% and Ninantic 60%? 1/3 of 40 is 13.3.

Google and apple gets a 30% cut on ios and play store. The rest is shared by niantic and TPC.
 

Astral Dog

Member
Huh?
And I just asked the other day in another thread why Nintendo would make so much money from Pokemon GO when it wasn't their game and people here had all kinds of detailed explanations and when Nintendo now says that they won't make much money from this people now say that it was already widely known and investors were crazy to think otherwise.

more that Nintendo had a hand in the creation of Pokemon GO and other mobile titles, and that they are partial owners of Pokemon Company.

their success on the mobile space has always been part of an strategy to strenght their brands , promote their hardware. expand and sell software. they are not really a mobile games company.
 

Kagoshima_Luke

Gold Member
Can we trust Nintendo's forecasts at this point, though? Didnt they keep massively missing the mark with Wii U sales forecasts for years?
 
Can we trust Nintendo's forecasts at this point, though? Didnt they keep massively missing the mark with Wii U sales forecasts for years?

I mean maybe if they WENT with the Pokemon go boom and boosted their forecast, then sure we can be skeptical.

But they didn't even change it? Just keep the light Wii U forecast where it was? They're grounded in reality.

That said they never massively missed the mark about the Wii U in recent years.
 

Dmax3901

Member
I bought 8 shares for like $18 a few months ago, was thinking about selling after reading this but I have faith, gonna hang on to them.
 

aadiboy

Member
"Hey guys, you know that incredibly successful game that millions are playing and we're partly responsible for? Well, it's actually not that successful, so don't expect it to make a lot of money for us!
 
°°ToMmY°°;211268001 said:
Google and apple gets a 30% cut on ios and play store. The rest is shared by niantic and TPC.

I was thinking along the lines of what terms two partnering companies that created the app would have come to. In their agreement, they would be splitting it up two ways. If they later put it on some magic App Store that took no cut, the split would potentially be 60/40. It's just conjecture based on too little info on my part, but I doubt two companies coming together would say "lets include Apple in this". If so, Apple as a partner would make in excess of 30%.

My interpretation of what Nintendo stated was that they have a 13% stake in the original deal, not all revenue generated. It's just just a thought. I can be out armchaired in this discussion, and my original take may also have been wildly reductive. There are certainly other ways you can split a deal between two parties.
 

Kevtones

Member
Time to release 20 more Pokemon only captured in certain zip codes. Time to release new elements into a very simple and fun concept.
 
The share spike was bogus in the first place, the increase in valuation was not based on the reality of the situation, rather the hype and media attention on Pokemon Go.


There was nothing about that app that screamed huge gains in profitability, speculative traders and rich fools who fell for the believe that Pokemon go was their next Wii.


Clueless, Nintendo had to tell the truth or when the first financial results were released that were due to show the Pokemon profits didn't contain a huge upswing in profits, investors would have tanked the share value even harder.
 

WaterAstro

Member
So who makes majority of the money, and where can I buy their stocks?

Google is probably taking the biggest share as they are investors in Niantic AND take their 30% cut on Android side. Also, Niantic is a private company, so they don't have public stocks.

I knew all this Nintendo stock thing was just bullshit. Stock buyers just needed to smarten up.
 

D.Lo

Member
If Nintendo has a 13% stake in the game, and owns 33% of the Pokemon Company, does that really mean TPC get 40% and Ninantic 60%? 1/3 of 40 is 13.3.
That's probably the napkin maths the analyst has done, but it's pure speculation. Nintendo is the sole rights holder for the name Pokemon and all Pokemon character names, you would expect 13% just from that surely.

Of course it will get used as a fact now because some old guy said it.
 

stilgar

Member
Better now than later. The sooner the market corrects its speculative crazyness, the better it is for Nintendo. And gamers.
 

onipex

Member
Expected. If I still has shares I would have sold after the surge. Rarely investing in individual companies anymore though.
 
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