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

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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.

:arrow:Source
 

keven3477

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This was what i believed was true in the beginning, no where in the app said Nintendo, it was all mostly niantic, it always irritated me when anybody talked about Nintendo to fix the app when they had no hand in the development only in branding.
 

CathyRina

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This was what i believed was true in the beginning, no where in the app said Nintendo, it was all mostly niantic, it always irritated me when anybody talked about Nintendo to fix the app when they had no hand in the development only in branding.
their name is listed once in the entire app but only on the login screen which you can miss since the app auto-logs in.
And it's only there because Nintendo co-owns the Pokemon Company.
 
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Ericzander

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I knew it! Alright, so I didn't invest in Nintendo prior to the game coming out because I have student loan debt and I would be in a better position to pay that off quickly than to invest in anything. But I told my friend with no financial obligations to invest in Nintendo before the game came out. He did - and he was ecstatic. Once it hit its apex I told him he might wanna sell it because it looked to me (and I'm sure most people who were paying attention) that it plateaued. He didn't sell and now I gotta break this news to him. However he'll still come out ahead.
 

RevPokemon

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This was what i believed was true in the beginning, no where in the app said Nintendo, it was all mostly niantic, it always irritated me when anybody talked about Nintendo to fix the app when they had no hand in the development only in branding.
Again the problem is people don't think. It's like no one thinks Nintendo makes bed linen because it has Mario on it so why think they make apps with charters on it?
 
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The question is did Nintendo hide the information? I am not sure for 100% but that has to be considered.
I think Nintendo's shares in The Pokemon Company/GameFreak, w/e is public knowledge and therefor I think the investors just jumped the gun a little bit after seeing the popularity of the game.
 

RevPokemon

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I think Nintendo's shares in The Pokemon Company/GameFreak, w/e is public knowledge and therefor I think the investors just jumped the gun a little bit after seeing the popularity of the game.
I was speaking of the knowledge in relation to niantic and the profit relating to the actual app
 

tbb043

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Again the problem is people don't think. It's like no one thinks Nintendo makes bed linen because it has Mario on it so why think they make apps with charters on it?

Mario sheets are a hell of a lot further from Mario games than a Pokeyman phone game is from a Pokeyman GB/C/A/(3)DS game.
 

RevPokemon

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Mario sheets are a hell of a lot further from Mario games than a Pokeyman phone game is from a Pokeyman GB/C/A/(3)DS game.
True but ultimately the logc does apply to an extent as they are still different markets (although you could argue that they are different subdivisions of the same market).
 

TehCupcakes

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The question is, should I cash out now, or hold on hoping info about the NX will drive another spike? I bought into Nintendo stocks when they were down, knowing they would go up over silly things like Pokemon Go, but I should have anticipated them going down for the same reason. :P I don't really get why people think Pokemon Go is somehow a highly profitable product... I can't imagine most people spending real money on it, but perhaps I underestimate the economic potential of freemium games.
 
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Xenon Hacks

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The question is, should I cash out now, or hold on hoping info about the NX will drive another spike? I bought into Nintendo stocks when they were down, knowing they would go up over silly things like Pokemon Go, but I should have anticipated them going down for the same reason. :P I don't really get why people think Pokemon Go is somehow a highly profitable product... I can't imagine most people spending real money on it, but perhaps I underestimate the economic potential of freemium games.
Sell NX will be another flop, and if possible reinvest a small portion in Niantic.
 
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CathyRina

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The question is, should I cash out now, or hold on hoping info about the NX will drive another spike? I bought into Nintendo stocks when they were down, knowing they would go up over silly things like Pokemon Go, but I should have anticipated them going down for the same reason. :P I don't really get why people think Pokemon Go is somehow a highly profitable product... I can't imagine most people spending real money on it, but perhaps I underestimate the economic potential of freemium games.
Pokemon Go is literally a money printing machine. But Nintendo only gets 13% of the revenue.
I myself dropped 10€ on that game because that's all I'd pay for it if it was a premium product. Seeing how in my city somebody uses a lure module everyday other people seem to be spending money too.
 

anhminh

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It mostly mob effect, when investor see a bunch of investor go to Nintendo they just go with them.

Then when they see no profit in it, they just go and everyone follow.
 

Steena

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The app company is licensing the rights from Nintendo (who owns gf)
As I understand it, that's not the case.
Pokemon is owned by 3 companies: Nintendo, Game Freak, and Creatures Inc., which created "The Pokemon Company" in order to manage the franchise as a whole. Gamefreak is officially a second party, which means it is not owned by Nintendo in any capacity.
But wait, there's more.
Nintendo also has undisclosed levels of ownership to Creatures Inc., the third core company.
But wait, there's more.
Nintendo has the full ownership of the Pokemon logo and the Pokemon names, on top of doing their 32% ownership part by having a dedicated, separate developing team to assist GF (primary mainline game devs) with the games, publishing, and help networking.

"Now" they are licensing the franchise to third parties. Good luck figuring out what Nintendo's final net profit is. My brain exploded just typing this out.
 

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