Success of Pokemon Go pushes Nintendo stock to new heights
The Pokemon Go craze continues unabated, with reports of game-related crimes, and even politicians getting in on the act. All of this success has greatly helped Nintendo, but just how much it has helped was further underscored recently with news that Nintendo stock has now surpassed 30,000 Yen. According to Bloomberg, that means it’s Market Capitalization is now higher than that of its Japanese rival (and game industry behemoth) Sony.
This is all on the back of Pokemon Go, which is now available in 30 countries, including Canada this week. Its popularity has become a phenomenon, single-handedly turning around the fortunes of Nintendo in a way that industry analysts just have not seen before. In Japan, Okasan Securities spokesperson Takashi Oba has said that this the first time he has witnessed a quick change of fortune in so short a span of time.
As an illustration of how much Pokemon Go has affected Nintendo’s bottom line, Nintendo’s value jumped above $39 billion Tuesday in Tokyo, topping Sony for the first time, and extending a run that began after the app become a viral sensation. And on Friday, Nintendo set a record for the most shares ever traded daily in Japan.
One share of Nintendo is now worth almost $300 US as of July 19th. Just two weeks ago, the price was only half of that. Nintendo stocks were the most traded share on Tuesday, comprising around 25% of all traded stocks that day. It is all unprecedented – and a huge stroke of good fortune for a company that has struggled of late to gain back fans after the disappointment of the Wii U.
The bottom line is, Pokemon Go has been massive in a way that we just have not seen before. Nintendo now must completely re-examine their strategy going forward, since the success of this one game has certainly gone beyond what even they envisioned. Will this in any way help their big NX project? We can only guess.