The new Pokemon GO game was first released to select markets approximately two weeks ago. Since then, Nintendo have rolled the game out across more of the world in stages, tempered perhaps by the massive uptake in the game. In a very small space of time, the Pokemon GO game has attracted a huge number of followers such that it has overtaken Twitter’s regular user numbers in a very short space of time. Furthermore, players are highly engaged, spending far more time in the application compared with many other social media applications. This week, we’ve seen the game released in Germany and the United Kingdom.
When distilled, the Pokemon GO game is an augmented reality treasure hunt title. It uses our smartphone’s location services combined with the camera to put Pokemon monsters into locations on the map. When players approach the monster, they must activate their camera and are then able to see and ultimately capture the monster by flinging Pokemon Balls at the critter. The more monsters that are captured, the higher the level that the player achieves and the more additional rewards – for example, players may attend a Pokemon Gym with their collection of monsters once they reach level five. Pokemon GO also includes other real world areas for players to drop by. There are a few reasons for this massive adoption of the title; one is that today’s adults in their late twenties to early thirties remember the earlier Nintendo Pokemon games and devices, such as the Nintendo Wii and DS. These earlier consoles relied on different technologies: today’s Pokemon GO will generate income for Nintendo via the in-app purchase options.
In the investment world, Nintendo’s shares have enjoyed a significant rally over the week: the share price and hence the company value is up by 86% in a little over week and has reached a high of 27,800 Yen ($263), the highest the company stock price has been in six years. Earlier in the week we reported how the stock price rallied last weekend but this support has continued. Investment analysts claim they understand why the stock price has been supported so much but are unsure if these stock price gains can be justified because it is still unclear how much cash Pokemon GO will generate for Nintendo. We have already seen unsubstantiated claims that Nintendo earned $14 million in the first two weeks, but we will likely need to wait for the company to make an official statement.