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Nintendo Shares Have Plummeted After Investors Realise It Doesn’t Make Pokémon GO

Nintendo shares have dropped by 17.7% after investors in the company realised that it wasn’t Nintendo who created Pokémon GO. Nintendo warned investors that Pokémon GO wouldn’t make much difference to their profits as the game is developed by Niantic. However, Nintendo shares are still up 60% since the release of Pokemon Go a few weeks back. Analysts believe the market “overreacted” to the Nintendo statement:

“I believe that Pokemon Go will be material in the company’s earnings, given the current trends for the game,” David Gibson, a senior analyst at Macquarie Securities Group said.

Source 

83 thoughts on “Nintendo Shares Have Plummeted After Investors Realise It Doesn’t Make Pokémon GO”

      1. Well there is some sense to it. I doubt Millennials are the main investors who made this mistake, but there are plenty of long-term investors out there who don’t like the way that millennials invest in the market.

  1. That’s so stupid! Nintendo owns the Pokemon Company, so in essence anything they do Nintendo by virtue has been a part of. Plus a lot of Nintendo people were working on this game, including (if I remember right) Miyamoto himself!

    1. Not really, as far as I know it was mostly Niantic. Miyamoto himself said he wasn’t really involved in the development of the game during the Pokémon GO portion of the Treehouse Live @ E3 stream earlier this year. Maybe I missed something though, but if what you said was correct I would think Nintendo might want their name/logo displayed more prominently alongside Niantic’s and The Pokémon Company’s on the opening screen. Still, they own like 1/3rd of The Pokémon Company and invested in Niantic with an option to invest like 10 million more should this game prove be a success or something, so they definitely should benefit from this as well as holding copyright on the IP.

    2. Nintendo only owns a 32% stake in the Pokemon Company. The rest is owned by Gamefreak, Creatures Inc., and smaller investors. I believe Nintendo is still the majority shareholder, but they don’t own enough of the company to make all the decisions. Gamefreak and Creatures could easily overturn any decision Nintendo makes.

      Also, Nintendo only receives something like 10% of the profits made from Pokemon Go.

          1. For Game Freak, that’s correct.

            As for Creatures, that’s slightly incorrect. Nintendo has said before that they own some shares of Creatures, but they didn’t disclose the amount. (I know I saw it somewhere. If I find it, I’ll display the website in a separate reply.)

            1. You’re right. Nintendo does have a stake in Creatures. I read a post on reddit sometime last year that went into detail about the whole Pokemon ownership thing, but I probably couldn’t find it if I tried.

              I have a feeling that Nintendo’s stake is not large enough to say they “own” Creatures though. I think they would’ve come out and said if they controlled the company.

              1. No. My statement wasn’t meant to be said that Nintendo has the majority of Creatures’ shares. My statement was just meant to inform that they just has a minority stake (like they have over the Seattle Mariners, or even with their 10% stake with DeNA Inc.). That was all.

                1. Oh I didn’t mean to imply that that’s what you meant. I was just going back to Lazara’s original comment asking if Nintendo owned Game Freak. For his sake, I was just confirming that I don’t think Nintendo “owns” either company.

                2. Ignore that. I just realized the mistake I made. Lazara only asked if Nintendo owned part of Game Freak, not the whole company; in which case the information I originally gave on Creatures was completely incorrect.

          2. Anyway, what I can say is an absolute fact is that Nintendo owns all of the Pokémon names, as well as the actual name “Pokémon”.

            Source: http://www.pokemon.com/us/legal/ (saying, “Pokémon, Pokémon character names, Nintendo 3DS, Nintendo DS, Wii, Wii U, and Wiiware are trademarks of Nintendo.”)

            So Nintendo is the ultimate IP holder in this partnership.

          3. They are? Huh, you learn something new every day. I’ve been sure of that being a fact as long as I can remember, wonder where I’ve gotten the information

            1. See the other replies to get a better idea. I mistakenly implied that Creatures is completely independent of Nintendo, but Nintendo actually does have some stake in Creatures.

      1. No that’s incorrect. Nintendo is getting up to 30% of Pokémon GO’s profits.

        http://www.shacknews.com/article/95801/how-much-money-is-nintendo-going-to-make-off-of-pokemon-go

        Nintendo fully owns the Pokémon IP and The Pokémon Company is a wholly owned subsidary of Nintendo so no Gamefreak not Creatures Inc can’t overturn anything Nintendo decides on the Pokémon IP which is why it has remained on Nintendo platforms and just now going to mobile

        1. The article you provided clearly stated that Nintendo only owns 33% of the Pokemon Company (which is wrong; it’s actually 32%). Then you said that the Pokemon company is a fully owned subsidary of Nintendo. So tell me how Nintendo can fully own the Pokemon Company and at the same only own 33% of it.

          1. So the article isn’t credible because it was only a percentage off of what Nintendo’s ownership of TPC actually is?…..smh. And I only said that The Pokémon Company was a wholly owned subsidiary of Nintendo because Creatures Inc. who also has ownership of TPC is also a subsidiary of Nintendo. Either way you look at it Nintendo owns a majority of TPC meaning that they are the primary ” shot-callers ” of Pokémon

        2. Also, that article makes huge mistakes. Its final conclusion states that Google makes 53.33% of the profit, Nintendo makes 31.11%, and Creatures and Gamefreak both make 7.77%. So what about Niantic? The developers of the game don’t make any money off of it?

          Google and Apple collect 30% of profit as a standard store fee. That would leave 70% of profit to split between Niantic, who developed the game, and The Pokemon Company, who owns the rights. Assuming profits are split evenly, that leaves 35% to the Pokemon Company. Since Nintendo owns 32% of that company, they get 11.2% of the profits from Pokemon Go.

          Now Nintendo also owns a piece of Niantic, but I’m not sure how much. So I’ll conclude that Nintendo probably takes home 15% of Pokemon Go profits at most.

          1. I’m sorry I can’t agree with your assessment especially now since you inform me that Nintendo owns a piece of Niantic which could make that 30% of what they already make even a little higher. We’ll just have to agree to disagree but it was a very interesting discussion

            1. Genuinely confused about how you can disagree with an explanation that makes perfect sense. How can you expect Nintendo to get 30% or even more if Android/Apple already gets a third of the profit? Why would Nintendo get nearly half of what’s left? They aren’t the developers, nor do they own the majority of The Pokemon Company. So how would they possibly be entitled to 30% of the profit?

              1. Because Nintendo OWNS the Pokémon IP, the Pokémon trademark etc and they own a piece of Niantic. I have already provided a good trusted article that disects how Nintendo is getting 30% of Pokémon GO’s profits. Google, The Pokémon Company and Nintendo spent millions in publishing Pokémon GO so how aren’t they entitled to 30%? Tell me……..

                1. I told you above, Ridleyslayer told you above additionally to pointing out the mistakes in your “trusted” article – do you really it to be explained a third time to understand?

                    1. Thank you for your mature and rational reply, your argument has fully convinced me that Nintendo does get 30% and more of the profit. Actually, I even believe they might be getting 101%, that’s how outstandingly great your reply was.

            2. Let me restate that since WordPress rudely sent my reply through when I wasn’t finished!

              If you’ve seen Bar Rescue, you’ll know if you don’t own majority stock, you aren’t the shot caller. If you own 30 percent while your partners own the other 70 percent and both don’t like what you are doing, they can easily unite as one & kick you to the curb and take over as they’ll be the majority stock holders. So unless Nintendo owns 51%, they aren’t in control of the Pokemon franchise like many of you think.

          2. Are you sure Nintendo owns part of Niantic? Hadn’t heard that before, interesting if true.
            Other than that, you’re right about the distribution of the profit gained from the app, Nintendo does get about 10%.

            1. I think it’s only a small percentage. What I read stated that Google, The Pokemon Company, and Nintendo all invested a combined $20 million to Niantic for the company’s future growth, plus a further $10 million was promised should Niantic reach certain milestones. I haven’t seen any numbers on how much Nintendo themselves have invested, but whatever it was, Nintendo now has stake in Niantic.

              1. I just read about it, and it’s exactly as you’ve said. Interesting!
                Though I highly doubt it was enough to entitle Nintendo to anything even close to 30% of Pokemon Go profits, 15% at most sounds realistic.

              1. People provide logical explanations as to why your statement is not correct, yet you still insist on it being otherwise. Is it really that difficult to you to accept you may be wrong? How unfortunate.

  2. LOL what a bunch of morons. This proves how misleading the stock market is. It says absolutely nothing about how a company is actually performing. Just wait until Nintendo’s earnings come out at the end of the month.

      1. Only 32%? lol Boy Nintendo is screwed if the other shareholders in the Pokemon Company ever decide to unite and take over, pushing Nintendo to the side, as Nintendo won’t be able to do a damn thing to stop them because it’s well within their legal rights to do so as majority shareholders. Now I gotta wonder how much stock does Nintendo actually own of Pokemon itself.

        1. Well not quite. It’s kind of complicated. Nintendo itself owns the name “Pokemon” and the names of all the monsters in the games; but the Pokemon Company (which is split between Game Freak, Creatures, and Nintendo) owns the right to produce any Pokemon merchandise.

          So if Nintendo wanted to do something, but the other two didn’t, they would just over rule Nintendo and it wouldn’t happen. At the same time, if Creatures and Game Freak wanted to do something but Nintendo didn’t, Nintendo could just say “Well we own the names and we say you can’t use them.” So in essence, all three company’s pretty much have to work together for anything to be done.

          1. That’s probably why we don’t hear much about Nintendo taking control of most things Pokemon related because they don’t want to cause any friction with the others.

  3. thekoopainthesewers

    Nintendo owns 1/3 of The Pokémon Company, which is also owned by Gamefreak and Creatures Inc. The thing is that Nintendo is a big shareholder in Creatures Inc. And also the owner of Pokemon’s copyright and trademark.

  4. I think that’s a bad move. Even if Nintendo isn’t getting most of the profits from Pokemon Go they are getting much more from the sales of other Pokemon games and merch which are booming at the moment.

  5. Pingback: Las acciones de Nintendo se van a la baja por Pokémon Go - TierraGamer

        1. There’s a funny thing that happens whenever Apple announces something, now that you mention them.

          Every time Apple’s market value increases, so does the value of a random oil platform. Wanna know why?

          Apple’s asx code is AAPL. That oil company’s is APPL.

          So yeah, that’s the kind of people we’re dealing with here.

  6. Oh well, I hope those who stayed got some good bucks in…I’m still figuring out how I’m gonna buy from them, computershares.com states they hold them as a branch but I see no options to buy from them.

    1. What symbol are you looking under? Nintendo has two. If you’re trading on the Tokyo Stock Exchange you use NTDOF. Many American brokerage firms don’t do overseas trading and so you would use NTDOY instead. That is Nintendo’s OTC symbol.

  7. Pingback: Las Acciones de Nintendo… ¿Caen por Pokémon GO? – NINtheorist

  8. I still don’t understand why Nintendo make that statement, they should have left it and keep silence after the investor report went public and questions were asked. It is a bad move/timing from Nintendo to come out with that statement.

  9. Pingback: Las acciones de Nintendo se van a la baja por Pokémon Go | TierraGamer

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