Nintendo’s shares plunged after the company said late Friday that the financial impact from the worldwide hit Pokemon GO will be limited, reports Bloomberg.
Stocks had fallen by 17% by midday in Tokyo, losing over $6.4 billion in the process. This downward spiral cannot continue, as Japanese exchange rules do not allow for a fluctuation of more than 18% a day.
Nintendo stated that the game’s financial impact will be “limited” and that it doesn’t expect to revise its annual forecast higher based on current conditions.
This is despite further sales of the upcoming Pokemon GO accessory being factored into the forecast.
“The content of the announcement itself is not that shocking, but it is a surprise they said it on Friday instead of when they report earnings,” said Nobuyuki Fujimoto, a senior market analyst at SBI Securities Co.
“The game has been published in Japan, so for the time being we’ve exhausted all the catalysts.”
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I’m pretty sure its because Niantic has released a game that has ZERO retentive appeal. Yay, I just caught 346 zubats. Whoop. While my Charmander sits on CP11 because he was the first thing I chose & theres no way to get him more powerful.
If they had released PokemonGO as more of a game like Red/Blue/Yellow GameBoy was, this would not be a headline, I’m almost sure of it.