HomeGamingPokémon Go's Successful Launch Sends Nintendo's Stock Soaring

Pokémon Go’s Successful Launch Sends Nintendo’s Stock Soaring

Nintendo has achieved a 25 increase in its shares following the successful launch of Pokémon Go on July 5.

The Japanese market closed on Monday at just under $200 a share, resulting in the biggest rise per share price in the company’s history since 1983. According to reports, Nintendo’s market value has since then soared to about $7.5 billion.

Pokémon Go is yet to hit all major territories worldwide and is currently only available in the United States, Australia and New Zealand. The launch only saw a minor spike on Friday, and interestingly, the largest spike in the company’s shares only came this week. Analysts believe that this sudden change is due to the game’s upcoming launch in Asia and other territories. Having witnessed the massive success in the west, investors are now clamboring to the opportunity of a gigantic launch in Asia and other regions.

That being said, several analysts are skeptical about the long-term success of Pokémon Go. The game’s estimated daily turnover since the first day of release is about $3.9 to $4.9 million. Analysts believe that for Nintendo to reap benefits from the success of Pokémon Go, that turnover rate needs to be about $140 to $150 million a month. Nintendo has not yet reached that point, but for it do so it becomes extremely important that Pokémon Go remains in the top apps list in both the iOS and Android stores.

Even with the skepticism shown by some investment firms, Pokémon Go continues to garner popularity and following with each day. There is a large crowd in Asian regions just waiting for the game’s release. It wouldn’t be surprising to see those Nintendo numbers rise even further once the game is officially available worldwide.

As of now, Pokémon Go is suffering from some server issues, seeing the large number of users trying to connect simultaneously. Players are often kicked out of the game and forced to reconnect several times during a single session. Nintendo has acknowledged the problem and is looking into matters.

Saqib Mansoor
The odd man in the group who hates chocolate, cheese, and having to work on Sundays.


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