Nintendo Now Worth More Than Sony, Thanks to Pokemon Go
NET WORTH: $40 BILLION
Following Pokemon Go’s release, Nintendo’s market value has skyrocketed and surpassed Sony’s.
Pokemon Go is a free-to-play-location-based, augmented reality game developed by Niantic for iOS and Android devices. It was released in most regions of the world in July 2016. In the game, players use the smart device’s GPS and camera to capture, battle, and train virtual creatures, called Pokémon, who appear on the screen as if they were in the same real-world location as the player. The game supports in-app purchases, which are used for additional gameplay items.
This is a really big thing especially that the game has only been out for a week. Yes, a week. And the number of estimated daily users is 20 million since its launch! Nintendo is an investor in the property, with Niantic and The Pokemon Company behind the game’s development and publishing on the mobile platform. What more if it is the creator and not just a backer? Imagine all the money it would rake and with no partners to share it with.
According to Bloomberg, Nintendo’s market value has climbed over $40 billion, passing Sony’s $38.38 billion. However, analysts say that if the company do not step it up with their other games and consoles, Pokemon Go alone will not keep them on the top. 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.
The company should also take immediate and appropriate steps regarding the sudden plunge in their share prices when the investors realized that it is not the game’s sole owner.
Seems like Nintendo’s reign might really be a short one.
[Sources: Bloomberg, Gamasutra, Nintendo Enthusiast, PlayStation Lifestyle]