Pokémon Go – An example of how E-Gaming is taking over the world!
Pokémon Go developed by U.S. based Niantic and licensed by the Pokemon Co. has undoubtedly been at the pinnacle of the E-Gaming industry since it has made its debut on July 6,2016. In the game, players use a smartphone’s GPS capability to locate, capture and train virtual creatures, called Pokemon, who appear on the screen as if they were in the same real-world location as the player- Augmented reality technology’s first ever real success.
Nintendo’s share see – saw
Pokémon Go had initially caused Nintendo’s stock price to rocket 25% higher- adding nearly $12 billion to its market value ($42.5 billion in total) and taking it above Sony by around $3 billion.
However it is not the perfect solution for Nintendo as its financial interests in the success of the game is limited by the nature of the game’s history and its stake in the involved parties i.e. 33% of Pokemon Co. and 7% stake in US based Niantic = 13% effective stake in Pokémon Go game. Despite the massive success of the game, the company did not raise its profit expectations as a result of whichits stock fell by 18%,($6.7 billion) loss in its market value- maximum single day decline allowed to a Japanese stock.
What next for Nintendo? The experience with “Pokémon Go” has likely given Nintendo hints for making its wholly owned smartphone games a bigger success and it still has the most valuable character intellectual property in the world such as Super Mario, The legend of Zelda and Metroid.
Impact on Related companies/ competitors:
The benefit of the game did not only last to its developers and investors but also graced the companies in relation to it as they saw a significant surge in their stock prices.
As far as competitors are concerned, Pokémon Go had crushed its division superstars (Candy
