Investors Realize Nintendo Doesn't Make Pokemon Go, Stock Drops

richardparker · Jul 25, 2016

damn sad...

WiiUBricker · Jul 25, 2016

The correct headline should be something like this: Nintendo's stock drops after announcing limited revenue off Pokemon Go
Investors couldn't care less who makes the game. It's about how much the profit is. You make profit, investors are interested. You don't make profit, investors aren't interested. Simple.

gbaboy123 · Jul 25, 2016

i don't understand can someone explain me. nintendo and gamefreak own the pokemon ip right? so niantic is the developer so niantic developed this game with nintendo and gamefreaks intellectual property so pokemon go without the pokemon would just be something else. so why the hell is this happening considering the pokemon brand is now getting bigger because of this game so now is more valuable for nintendo. shouldn't the stock be high still. and why the hell when activision payed like 7 billion for candy crush the stocks went up. i just don't understand this

RevPokemon · Jul 25, 2016

WiiUBricker said:
The correct headline should be something like this: Nintendo's stock drops after announcing limited revenue off Pokemon Go
Investors couldn't care less who makes the game. It's about how much the profit is. You make profit, investors are interested. You don't make profit, investors aren't interested. Simple.

Very true but if it is implied that Nintendo made the game it is only reasonable to assume they get a larger (if not 100%) piece of the pie.

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gbaboy123 said:
i don't understand can someone explain me. nintendo and gamefreak own the pokemon ip right? so niantic is the developer so niantic developed this game with nintendo and gamefreaks intellectual property so pokemon go without the pokemon would just be something else. so why the hell is this happening considering the pokemon brand is now getting bigger because of this game so now is more valuable for nintendo. shouldn't the stock be high still. and why the hell when activision payed like 7 billion for candy crush the stocks went up. i just don't understand this

The app company is licensing the rights from Nintendo (who owns gf) and the stock went down since the amount of revenue being collected for Nintendo is smaller than what was originally thought. The brand strength does matter but the big deal is the actual revenue.

Subtle Demise · Jul 25, 2016

Aside from titles like Mario Kart Wii developed by their R&D department, they don't actively develop games anymore. They are licensors and publishers. I thought this was common knowledge, especially in the business world.

RevPokemon · Jul 25, 2016

Subtle Demise said:
Aside from titles like Mario Kart Wii developed by their R&D department, they don't actively develop games anymore. They are licensors and publishers. I thought this was common knowledge, especially in the business world.

Basically that is what it boils down to for most of thier original ip franchises

Ev1lbl0w · Jul 25, 2016

I always knew it was Niantic who developed the game. Nintendo just gave them permission to use Pokemons.

And, in the beginning of the year, Nintendo was going to give permission to use ther franchises for mobile apps.

Seriously, did many people though Nintendo did Pokemon Go? I mean, when you open the app it shows "Niantic", not "Nintendo"!

RevPokemon · Jul 25, 2016

Ev1lbl0w said:
I always knew it was Niantic who developed the game. Nintendo just gave them permission to use Pokemons.

And, in the beginning of the year, Nintendo was going to give permission to use ther franchises for mobile apps.

Seriously, did many people though Nintendo did Pokemon Go? I mean, when you open the app it shows "Niantic", not "Nintendo"!

Perhaps they did because
A) they thought Nintendo owned the company
B)they believed Nintendo did all of the work and used the company for distribution

Ev1l0rd · Jul 25, 2016

Ev1lbl0w said:
Seriously, did many people though Nintendo did Pokemon Go? I mean, when you open the app it shows "Niantic", not "Nintendo"!

Because 'Pokémon' is more often associated with Nintendo (or GameFreak), than with Niantic.

Ritsuki · Jul 25, 2016

Tom Bombadildo said:
View attachment 57198

Since Pokemon Go was released, Nintendo has been all up in that money. With a century-record under their belt, it's safe to say the executives at Nintendo were rolling in the dough...that is, until investors realized that Nintendo themselves didn't make Pokemon Go.

The Stock dropped a whopping 18%, resulting in a loss of $6.7 billion market value for Nintendo after their record breaking $4.5 billion surge on Friday. The stock dropped after announcing their 13% "economic stake" for the app itself.

Source

The investor didn't exactly "realize" that, Nintendo actually told them that they'll get only 13% of the generated profits. Why ? Because like said before in the topic, Niantic developed the game, using the Pokemon franchise, which actually doesn't belong directly to Nintendo, but to The Pokemon Company, and Nintendo owns 32% of this company. So Niantic will pay for the franchise and an indemnity for the help they provided in the development of the game. Meanwhile, they didn't change their previsions for the years, so they pretty much knew that was going to happen. And even with this loss, they still gained over 10 billions in capital over the weeks.

RevPokemon · Jul 25, 2016

Ritsuki said:
The investor didn't exactly "realize" that, Nintendo actually told them that they'll get only 13% of the generated profits. Why ? Because like said before in the topic, Niantic developed the game, using the Pokemon franchise, which actually doesn't belong directly to Nintendo, but to The Pokemon Company, and Nintendo owns 32% of this company. So Niantic will pay for the franchise and an indemnity for the help they provided in the development of the game. Meanwhile, they didn't change their previsions for the years, so they pretty much knew that was going to happen. And even with this loss, they still gained over 10 billions in capital over the weeks.

Keep in mind the loss will most likely grow though

CeeDee · Jul 25, 2016

DiscostewSM said:
Maybe I missed something, but I didn't see anywhere in the article that the drop was due to investors finding out Nintendo didn't make Pokemon Go.

WiiUBricker said:
The correct headline should be something like this: Nintendo's stock drops after announcing limited revenue off Pokemon Go
Investors couldn't care less who makes the game. It's about how much the profit is. You make profit, investors are interested. You don't make profit, investors aren't interested. Simple.

gotta have that clickbait title though

RepeatingDigits · Jul 25, 2016

Breaking news: Investors are fucking idiots who don't even know what the company they're investing in even does.
More at 11.

RevPokemon · Jul 25, 2016

RepeatingDigits said:
Breaking news: Investors are fucking idiots who don't even know what the company they're investing in even does.
More at 11.

The question is did Nintendo hide the information? I am not sure for 100% but that has to be considered.

CathyRina · Jul 25, 2016

Holy shit did it take long for people to read the Wikipedia page, realize that it was Tsunekazu Ishihara's Idea (Head of the Pokemon Company), realize that there is no splash logo for Nintendo in the app and that nintendo's app plans were excluive towards Dena's 5 apps, one of which is Miitomo.

RepeatingDigits · Jul 25, 2016

RevPokemon said:
The question is did Nintendo hide the information? I am not sure for 100% but that has to be considered.

They didn't hide anything. Investors are just that stupid, I mean they only move by numbers and have no interest in the company itself.
Suits just don't care, that's why we got "pay $5 to make mario jump higher" man. Complete disconnect and ignorance.
In a nutshell, they're just autists with money who like numbers. That's the stock exchange for you.

OfficialBrony · Jul 25, 2016

RevPokemon · Jul 25, 2016

XrosBlader821 said:
Holy shit did it take long for people to read the Wikipedia page, realize that it was Tsunekazu Ishihara's Idea (Head of the Pokemon Company), realize that there is no splash logo for Nintendo in the app and that nintendo's app plans were excluive towards Dena's 5 apps, one of which is Miitomo.

Afaik the DeNA deal was not 100% exclusive

OfficialBrony · Jul 25, 2016

CathyRina · Jul 25, 2016

RevPokemon said:
Afaik the DeNA deal was not 100% exclusive

Still, the writing was on the wall.
There were at least half dozen Pokemon Apps before Pokemon go and yet Nintendo still claimed Miitomo to be their first one.
People don't do research nowadays.

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