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Nintendo Shares Rise Slightly after Monday’s Plummet

After the dramatic plunge of 17.7% in Nintendo’s shares on Monday, representing a massive $6.4 billion loss in value, its value has risen again by 1.6%. The plummet came following a statement from the Japanese games company making it clear that it does not own or make the worldwide phenomenon AR game, Pokemon Go.


Img source: geomarketing.com
This seemed to come as a shock to investors, who assumed Nintendo would profit greatly from the success of the game, due to its association with the Pokemon brand. The statement stressed that Pokemon Go ‘is developed and distributed by Niantic, Inc’, a privately-held US spin-off from Google, and that Nintendo’s income from the game will be ‘limited’.


Despite these disturbances, Nintendo’s shares have increased in value by over 60% since before Pokemon Go was released on the 6th July.


While the company will not be making huge profits from Pokemon Go in the near future, the overwhelming success of the game should encourage investment Nintendo in similar projects, which would be a source of income.


For instance, Nintendo’s Pokemon Go Plus is an accessory to the game, worn on the user’s wrist, which connects to the app via low-power Bluetooth and alerts the player - through vibration and blinking lights - when there are Pokemon nearby. It has the major advantage of conserving your phone’s battery life, whereas the app has reportedly drained battery very quickly. You also have less chance of tripping over.


This could deliver a much-needed lift to the games company’s earnings, however, there has been some confusion over the release date. Nintendo tweeted this morning confirming the date has been pushed back from late July to September 2016, news that disappointed fans. No reason has yet been given for the delay, nor have they set a specific launch date. In an effort to make up for the inconvenience, Nintendo is offering customers who pre-ordered the device a £5 gift voucher, if they are prepared to wait the extra month.  

On a more positive note for Nintendo, their new partnership with Japanese mobile developer DeNA could be another way to boost their value directly. The firm has announced that their first two mobile game ventures together will be based around the Nintendo franchises Animal Crossing and Fire Emblem. At this stage, we haven’t been told much about these apps, other than that they will be free-to-play and contain in-app purchases.



Naomi is an English graduate with an itch to write. Her free time is spent blogging, reading feminist writing, cycling, cooking and managing her food Instagram account. Her not-so secret talent is the ability to nap anywhere. Follow her @Songbird_Naomi

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Nintendo Shares Rise Slightly after Monday’s Plummet Reviewed by Naomi Pyburn on Wednesday, July 27, 2016 Rating: 5

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