Nintendo Shares Took a Nosedive After Shares Confusion

Pokemon Go is probably one of the best mobile phone gaming apps in recent history. As we speak, millions of players in different parts of the globe are probably on the streets to find and catch Pokemon.

Now, Nintendo’s shares rose to new heights just days after its official release earlier this month. Although Nintendo has enjoyed the game’s success, that seems to be short-lived as the entertainment company’s shares took a nosedive after the shares confusion.

You see, the developers of the game are Niantic Studios, which is an independent gaming company. They work in tandem with the Pokemon Company, just a sister company of Nintendo if you will.

This means that Nintendo doesn’t necessarily have the complete rights to the game; they only have a portion of it since the Pokemon Company and Nintendo has some shares in place.

In fact, there was a recent statement released by Nintendo stating that although the Pokemon Company is affiliated with them, they only have a total of 32% of the shares of the aforementioned company.

What does this mean? It means that although Pokemon Go is one of the hottest games in existence, it doesn’t necessarily mean that the entertainment company is enjoying the full benefits of it.

That is because Nintendo only gets to have 32% of what the Pokemon company is earning from the game. Furthermore, that 32% might fall in the near future and 32% is really not enough considering that Niantic gets the bulk of the money.

Because of this, investors are now extracting their shares from the company after this shares confusion and the Nintendo’s shares plummet because of this.

It also means that investors were not able to do their research prior to investing in Nintendo’s shares. You could say that it is in the part of the investors.

It is good that Nintendo made an official statement about their true status when it comes to Pokemon Go.

This means that they are not scared to disclose information, especially with regards to something sensitive. I laud them for what they did because they were honest despite the repercussions.

Even though Nintendo’s shares have plummeted because of this news, there is still some hope for them. According to recent reports, Niantic will pay some royalties to Nintendo due to the fact that the game developers will increase the Pokemon count in the near future.

This means that investors who are looking to stick around having Nintendo’s shares need not worry much.

Also, Nintendo is not scared about the recent plummet in stocks because they are going to receive ownership in two upcoming games for mobile phones, the Fire Emblem and Animal Crossing games.

Should that be successful, Nintendo can get good shares from those two games. And I truly think that what they did recently was a good move and it can actually improve the player count of Pokemon Go and future games under Nintendo’s helm.

Pokemon Go is made by Niantic Studios brought to you in part by the Pokemon Company and Nintendo. This mobile phone game is available for both Android and iOS platforms.