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Nintendo Stock Boosted By Pokemon Go Launch

Pokemon GO’s launch has had an immense influence on Nintendo stock.

Reuters reports that Nintendo stock price has risen by 9 percent in the wake of Pokemon GO’s launch yesterday. The surge in stock price sees Nintendo’s stock value at $23 billion.

Number one on Apple’s App Store, the augmented reality game by Niantic Labs is experiencing frequent crashes, caused by a high number of users logging in simultaneously.

A free to play game, the game incorporates micro-transactions starting a $0.99. Nintendo is currently shifting a large portion of there effort into mobile gaming, and Pokemon GO is only the start in a batch of games the company promised to release this year.


RELATED: MAN PLAYS POKEMON GO AS WIFE GOES INTO LABOR


“It has more (monetization) than we expected; as users build their Pokémon inventory, spending money becomes needed to store, train, hatch and battle,” Macquarie Securities said in a note to clients, adding that purchases so far in Australia were not being driven by big spenders but by a large number of users.

nintendo stock
Pokemon GO. Lends to Nintendo’s rise in stock value / Nintendo & Niantic Labs

The company has promised four more smartphone games in the financial year to end-March and has said it expects mobile gaming to help boost annual operating profit by a third to 45 billion yen ($450 million).

“The company has huge intangible assets like characters but it hasn’t been trying to use them seriously. But the success of its Pokemon GO shows the company has got great content,” said a fund manager at a UK asset management firm in Tokyo.

However, the Japanese giant is not going to neglect its console offering, with a new console, the Nintendo NX scheduled for a March 2017 release.

How is your experience with Pokemon GO so far? Share in the comments!

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