The mobile video game sensation that is rocking the US and Australia have paid big dividends to Nintendo, with the company seeing a 20 percent stock spike and a raise of almost $11 billion.
Pokemon Go is a mobile game that allows it’s users to walk around in their real-life surroundings and, with the use of augmented reality, catch Pokemon by using the camera on their cell phone.
The game seems to be a perfect combination of technological brilliance, mixed with millennial nostalgia. The success of Pokemon Go not only bolstered Nintendo’s stock, but also showed its investors that they could replicate this success in the future with the hundreds of other characters in their library.
“The company has huge intangible assets like characters but it hasn’t been trying to use them seriously. But the success of its Pokemon GO shows the company has got great content,” said a fund manager at a UK asset management firm in Tokyo.
Investors are also happy over the game’s ability to make money. Like the popular mobile games from King (such as Candy Crush), Pokemon Go has a micro-transactions feature. Users spend real-world money in order to obtain items such as more Pokeballs (used to catch the creatures), eggs (which hatch them) and more.
The game itself may be free, but the path to quicker and better results requires money.
Nintendo is also going to capitalize on Pokemon’s popularity with add-ons as well. Later this month, Nintendo will release a $35 portable device which will allow players to capture Pokemon without the use of their smartphone.
The combination of micro-transactions and new accessories prove that Pokemon Go’s moneymaking venture is here to stay.
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