Nintendo downplays financial impact of Pokemon Go, shares plunge
Tokyo, July 25 (IANS) Shares of Japanese videogames giant Nintendo plunged over 17 per cent on Monday after the company downplayed the effect of the augmented reality game Pokemon Go on its earnings.
At the close of trading at the Tokyo Stock Exchange, the Kyoto-based company’s stocks had lost 17.72 per cent, with respect to its closing price on Friday, to stand at $218, Efe news reported.
The drop partially offset Nintendo’s recent, extraordinary climb, when its shares and market capitalisation doubled after Pokemon Go’s release on July 6.
The company said in a statement on Friday, something that has also been emphasised by analysts after Nintendo shares soared following the game’s launch, that the Pokemon Company, co-developer and publisher of Pokemon Go, is a subsidiary of Nintendo, which owns only a 32 per cent stake in the company and which is why the impact on Nintendo’s earnings will be limited.
It added all this has already been reflected in the profit forecast in April, which will not be revised for the time being.