Nintendo Loses $1.1BN As Pokemon Go Failed To Lead A Surge In Shares
FSM News | Dec 19, 2016 07:58AM ET
Why The Much-Awaited Game Next To Pokemon Go Failed To Didn’t Lead A Surge In Nintendo’s Shares
Despite their towering gains on the release of the much-awaited game Pokemon Go mobile game which was made available on Android and iOS devices a couple of months ago, the company failed to keep the same impression for Super Mario Run.
The mobile application which was released last December 15th was announced last November at the same Apple (NASDAQ:AAPL) event where the iPhone 7 and 7 plus were unveiled.
The Super Mario game remains as a classic to most Nintendo fans. The announcement of the much-loved game gained a wide impression which sent the shares of the company to surge to as much as 5% on top of their previous gains on the release and success of Pokemon Go.
The game is currently available on iOS devices although a release date for android devices is still yet to be announced. Nintendo did announce during the Apple event that a release for the game supporting android devices is set to be announced or released early next year.
Although it the initial announcement have initially left a good impression on Nintendo fans and users, the results of the release a few days ago failed to up Nintendo’s market value as it the shares of the company have reportedly dropped by as much as 4.2% during early Friday trading and as much as 7% more during Friday’s close leading to a loss of $1.1 billion in Nintendo’s market value.
Despite the game being made available as a free to download, this will only give the user a limited access to the game with the full version on sale for $9.99. 2.85 million downloads of the free version were recorded on the release of the game.
Nintendo Shares
On Pokemon Go’s release, the shares of the Japanese consumer electronics company have surged to new highs with the shares leaped to its highest level since last 2010. Shares of the company DeNa also dropped by 6.8%. DeNA is a developing company who worked with Nintendo for Super Mario Run.
The initial announcement of the game during the Apple event over a month ago have led the shares of the company to rise to as much as 13% on the positive reception of the game.
Although it was already announced then that the game would be offered at a price of $9.99 for the full version, it wasn’t until the game was officially released that the disadvantages of the free version were experienced by the consumers who have downloaded the said version.
This led to negative reviews on the game which are mostly concerns on the price of the application or for some, the content. The game was also compared to Pokemon Go where the full version can be downloaded for free. The game also requires a data connectivity or wifi to be played.
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Shares of the company then declined by 4% during early Friday trading before closing even lower at around 7% on the trading session’s close. From previously trading at around 248.00, shares of the company are now trading at around the 219.00 level and is still set to further decline on news that Nintendo has just recently slashed their market value by $1.1 billion less.
Aside from Super Mario Run, reports also say that the company is also to announce and release two more games from the company which might offer investors a better outlook than Super Mario Run.
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