Nintendo Shares plummet when investors realize they didn't make Pokemon Go

1,368 Views | 2 Replies | Last: 7 yr ago by tamusc
TexasAggie_02
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AG
http://www.theverge.com/2016/7/25/12269466/nintendo-stock-plunge-pokemon-go

quote:
Pokmon Go is a collaboration between The Pokmon Company and Niantic Labs, the developer who previously created the similar AR game Ingress as part of Google. This apparent revelation caused shares to plummet in Monday trading, with the stock dropping 17 percent at one point, representing about $6.4 billion in value; as Bloomberg notes, Tokyo stock exchange rules prevent share prices from moving more than 18 percent in a single day.
PooDoo
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Why would they assume it was from Nintendo?
Pman17
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The fat boys knew what they were doing shorting it.
tamusc
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quote:
Why would they assume it was from Nintendo?
Nintendo does own 30% of The Pokemon Company, which owns and manages the entire Pokemon brand. Nintendo also has been the publisher for basically every Pokemon video game prior to this, so many made the assumption, however ignorant and misguided it might be, that Pokemon Go was yet another Nintendo Pokemon game that was going to print money on a larger scale than ever before.

It's pretty shocking how little research investors did on the topic as a simple Google search would have yielded plenty of explanations.

http://www.polygon.com/2014/6/19/5745732/what-is-the-pokemon-company

"WHAT IS NINTENDO'S ROLE IN ALL OF THIS?
Nintendo works primarily with The Pokmon Company on production and distribution of each Pokmon game. The assembly line works like this: Game Freak develops each game and gives the final copy to Nintendo, who then produces and ships it around the world. Nintendo also handles marketing for each game.
"We obviously are involved in the approvals [and discussions] to augment where we want to augment," Smith said. "We're working with them basically all day long. We're in different offices, we're different companies, but we're working with them all day long to make sure everyone is happy, and everyone is up to date with what's going on with the projects."
The close collaboration between the companies often leads to confusion on who's doing what a problem that isn't lost on employees of The Pokmon Company. Using thePokmon TV application a free service that allows users to watch the animated show on mobile devices and tablets as an example, Novickas said that people often incorrectly attribute their work as Nintendo's.
"Regardless of how people are saying it," Novickas said, "it is interesting that there is this separate entity that is creating these Pokmon products that a lot of people don't realize are creating them.""
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