Nintendo Shares Plunge On Pokemon Go Warning
Umer Jamshaid Published July 25, 2016 | 07:59 PM
TOKYO, (APP - UrduPoint / Pakistan Point News - 25th july, 2016) - Shares in Nintendo plunged Monday after it warned that the Pokemon Go mania sweeping the world would not translate into bumper profits, taking the wind out of a dizzying rally that saw the firm's value more than double. The stock dived 17 percent to 23,405 Yen by the break after the Kyoto-based firm warned in a statement Friday evening that the hugely popular game would have only a "limited" impact on its bottom line. Markets had cheered the app's global success as a great sign for Nintendo's nascent move into the mobile games market. That sent it soaring as investors bought the narrative, pushing it above 30,000 yen at one stage -- and briefly making the firm more valuable than Sony.
But analysts had warned that the rally was overdone since the actual impact of the game on Nintendo's finances would be moderate at best -- a point it confirmed on Friday. Nintendo is the creator of the Pokemon franchise but the game, released on July 5, was developed by US-based Niantic.