Nintendo forecasts little profit from Pokemon GO, stocks drop
Neither Niantic nor The Pokemon Company are public traded companies, but Nintendo, which has stakes in both companies, is one. The co-developers of the highly popular Pokemon GO mobile game pay licensing fees to Nintendo. That said, even with loads of in-app purchases, it appears that most of the revenue will come to The Pokemon Company, not Nintendo.
That’s what the Kyoto-based videogames company stated in an investors’ note today.
“Because of this accounting scheme, the income reflected on [Nintendo’s] consolidated business results is limited,” the note read.
Shares of Nintendo dove 18 percent on this news during the Tokyo trading day. The price is still up some 61 percent since July 6, when Pokemon GO was officially launched.
Nintendo is looking forward to manufacturing the “Pokemon GO Plus” peripheral for the game. Even with that outlook, the company still hasn’t made adjustments to its earnings forecast.