The gargantuan success that is Pokemon Go (Nintendo’s first foray into the mobile gaming market) has boosted Nintendo’s stock market cap by a staggering $7.5 billion, the highest single-day surge in value the company has experienced since 1983.
Pokemon Go has reportedly been installed on more than 5 percent of Android devices in the US, with the game currently only being available in the United States, Australia and New Zealand – releases in other countries (and potentially its largest market, Japan) have unfortunately been delayed due to the technical difficulties the company has been suffering in an attempt to keep up with the colossal demand.
While this profitable event may seem to be in Nintendo’s favor, the app itself was created by Niantic (developers who specialize in augmented reality) in cooperation with Pokemon Company, with Nintendo receiving about 30% of Pokemon Go’s total revenue.
Pokemon Go is however free to play and naturally generates most of its revenue through the oft despised (but highly effective) micro-transactions, having raked in some $4-5 million on its first day.
One analyst however has calculated that the game will need to churn out from $140 million to $196 million in revenue each month in order to have any substantial effect on Nintendo’s profits, a task that would likely not prove difficult considering the marketing tie-ins and collaborations that the game will inevitably be subjected to.
Just whether Nintendo will be able to maintain the interest of its newly won mobile player base will likely be an even more important influence on the company’s future than any further console hardware releases it may be planning, marking a bold new chapter in the company’s history…