Shares of Japan’s Nintendo Co soared another 14 percent on Tuesday, more than doubling the firm’s market capitalisation to $42.5 billion in just seven sessions since the mobile game Pokemon Go was launched in the United States.
According to one equity analyst, Pokémon Go will need to create around $140 million to $196 million in turnover each month to have a significant impact on Nintendo's profits. Mia Nagasaka of Morgan Stanley told CNBC that Pokémon Go is estimated to have made $3.9 million to $4.9 million on its first day of release, suggesting that the game will need to keep near the top of the app charts pretty consistently to be a signifiant earner. Revenue can come through microtransactions, but also marketing tie-ins — drawing users to businesses with the release of location-specific pokémon
The phenomenal success of Pokemon GO - now available in 35 countries, the majority in Europe, and most recently in Canada - has triggered massive buying in Nintendo shares, surprising even some seasoned market players, A recent report revealed that Pokémon Go had already generated $14 million in revenue, though that number has no doubt astronomically grew since then.
Pokémon Go uses augmented reality technology to allow users to catch virtual Pokémon characters in the gamers' real-life surroundings using their smartphone screens, as well as battle other Pokémon characters
Some analysts have been upbeat about the money-making potential for Pokemon GO, largely from small purchases made while playing - and the positive signs for other mobile gaming launches planned by Nintendo for 2016 and 2017
source: Reuters CNBC
According to one equity analyst, Pokémon Go will need to create around $140 million to $196 million in turnover each month to have a significant impact on Nintendo's profits. Mia Nagasaka of Morgan Stanley told CNBC that Pokémon Go is estimated to have made $3.9 million to $4.9 million on its first day of release, suggesting that the game will need to keep near the top of the app charts pretty consistently to be a signifiant earner. Revenue can come through microtransactions, but also marketing tie-ins — drawing users to businesses with the release of location-specific pokémon
The phenomenal success of Pokemon GO - now available in 35 countries, the majority in Europe, and most recently in Canada - has triggered massive buying in Nintendo shares, surprising even some seasoned market players, A recent report revealed that Pokémon Go had already generated $14 million in revenue, though that number has no doubt astronomically grew since then.
Pokémon Go uses augmented reality technology to allow users to catch virtual Pokémon characters in the gamers' real-life surroundings using their smartphone screens, as well as battle other Pokémon characters
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| Image Credits: Pokémon |
source: Reuters CNBC