Nintendo have been enjoying a meteoric rise in market capitalization ever since Pokemon GO came out and now it looks like the effect is starting to wear off.
Shares have fallen by more than 17% resulting in a $6.3 billion loss in market capitalization. Nintendo quickly released a statement saying, “Pokemon GO’s impact is limited”. Not sure if that was a wise move but it remains to be seen if the Nintendo’s market value goes back to pre-Pokemon GO levels or not.
The company only has a 13% economic benefit from the app and it looks like investors finally realised this. The app isn’t benefiting Nintendo financially other than giving the company more exposure and it seems Nintendo is fine with that.
A new Pokemon game is expected to be released later this year. Earlier we had reported that Nintendo’s market cap had surpassed Sony, now it’s down again.
Read our analysis to figure out whether Nintendo has captured casuals again or not.
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