Nintendo shares dive after citing Pokémon Go will have ‘limited’ financial impact
Investors have now acknowledged Nintendo did not create the AR game causing shares to plummet
After the release of Pokémon Go, Nintendo saw its shares soar, but it has now faced a backlash as shares plummeted after investors realised it does not make the augment-reality game.
The Japanese gaming giant shares dived by 17.7%, after reaching %7.5bn in market value, just two days after the game was released.
However, Nintendo issued a statement after the close of trading citing that the bottom-line impact will be ‘limited' as it only owns 32% of The Pokémon Company and only a 13% stake in the actual game.
With this said, it would appear that shares skyrocketed when the game was released, due to shareholders thinking that the Pokémon was solely created by Nintendo. However, Nintendo has stated that the ownership of the game has been clear since the game was first announced.
The statement also revealed that the Pokémon Go Plus wearable device will soon be available to track a user's steps when playing the game. Nintendo also clarified that it has included expected figures for the wearable device into its forecast, therefore another hike is unexpected.
Despite the plummeting shares, Pokémon Go is continuing to dominate downloads.