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Pokemon Game Adds $7.5 Billion To Nintendo Market Value In Two Days (reuters.com) 168

Who would have thought that Nintendo will ever make a strong return to the market... especially with an app that is not designed for company's signature hardware. But that is exactly what has happened. Shares in Nintendo soared again on Monday, according to a report on Reuters, bringing market-value gains to $7.5 billion in just two days as investors cheered the runaway success of Pokemon Go, the company's first long-awaited title in mobile gaming. From the report: The game, which marries a classic 20-year old franchise with augmented reality, allows players to walk around real-life neighbourhoods while seeking virtual Pokemon game characters on their smartphone screens - a scavenger hunt that has earned enthusiastic early reviews. In the United States, by July 8 -- two days after its release -- it was installed on more than 5 percent of Android devices in the country, according to web analytics firm SimilarWeb. It is now on more Android phones than dating app Tinder and its rate of daily active users was neck and neck with social network Twitter, the analytics firm said. The game is also being played an average of 43 minutes a day, more time spent than on WhatsApp or Instagram, it added. Update: 07/11 11:03 GMT by M :A report on Quartz states that Pokemon Go has added nearly 11 billion USD to the value of Nintendo since its release.
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Pokemon Game Adds $7.5 Billion To Nintendo Market Value In Two Days

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  • by Anonymous Coward

    its rate of daily active users was neck and neck with

    I don't think you can draw many conclusions about something based on two days of history. Is it remarkably popular? Apparently. Will it continue to be so? That remains to be seen.

    This post is not meant to be in favor of or against this article or game or company. Just noting that the comparison isn't really valid.

    • Re:Two days? (Score:5, Interesting)

      by Dins ( 2538550 ) on Monday July 11, 2016 @10:14AM (#52489131)

      I played the game this weekend with my 18 year old son. It was actually pretty fun. The app needs a good bit of work, but assuming they keep developing and don't mess it up, I can easily see the added market valuation.

      It made a kid who usually sits inside at his computer most of the time walk a total of ~8 miles this weekend (not an exaggeration - he's hooked). As my son put it, "Michelle Obama has been trying to convince kids to go outside for 8 years. Nintendo did it in 24 hours."

      • Re: (Score:2, Interesting)

        by Anonymous Coward
        Not Nintendo. Niantic did it. As they've been doing for four years with Ingress.
        • by Dins ( 2538550 )
          Yes, but Ingress isn't a huge IP. Pokemon is.
          • Pokemon uses Ingress portals as Pokestops n such. So, Ingress paved the way for Pokemon, and the ONLY reason Pokemon is popular is because of the Pokemon name. Good for them.

            AND there are already HUGE problems for Pokemon with both Servers being overloaded, and hacked APKs that spoofers are going to use to ruin the game. At least with Ingress, you know who the spoofers are, not that Niantic does anything about them.

            • Re:Two days? (Score:5, Insightful)

              by chispito ( 1870390 ) on Monday July 11, 2016 @11:27AM (#52489759)

              So, Ingress paved the way for Pokemon, and the ONLY reason Pokemon is popular is because of the Pokemon name. Good for them.

              AND there are already HUGE problems for Pokemon with both Servers being overloaded, and hacked APKs that spoofers...

              I get it, you're upset because you like Ingress and why didn't all these people get excited about your alien hacking game instead of Pokemon? I like Ingress, too, but there was never any chance it was going to take off like this.

              • Re:Two days? (Score:4, Interesting)

                by Archangel Michael ( 180766 ) on Monday July 11, 2016 @05:04PM (#52492395) Journal

                Saying I am "upset" isn't quite right. I find it "amusing" that something that is so "new" isn't really all that "new".

                They should have used different places for their Pokestops, which are based on Ingress (and backstory) Portals. Create your own backstory, and own locations. Oh wait, that would be ... re-inventing the wheel! (not that new, after all)

                And yes, Pokemon is going to be all the rage, until all the idiots come out and get themselves hurt and killed. It happens in Ingress, but the PokeKids are pretty damn stupid about slamming on their brakes in front of the nearest pokestop doing whatever they do there.

            • Re:Two days? (Score:4, Interesting)

              by cfalcon ( 779563 ) on Monday July 11, 2016 @12:21PM (#52490103)

              > the ONLY reason Pokemon is popular is because of the Pokemon name

              Wrong.

              Pokemon is popular because Pokemon are cool and fun. Ingress is interesting, but Pokemon is great. It's also much more approachable, and the game has user settable goals (collect all of my favorite pokemon, etc), whereas Ingress is much more about raw power.

              I played Ingress and didn't like it. I love Pokemon Go, however.

              Music? Pokemon Go has pokemon music, which fucking rocks. Ingress is some mood setting noises, but nothing like Pokemon.

              Graphics? Over a hundred pokemon, able to be rendered into your backyard. You have a somewhat customizable avatar too. Ingress has a tricorder.

              Brand name, lol.

            • Re: (Score:2, Insightful)

              by Anonymous Coward

              Pokemon uses Ingress portals as Pokestops n such. So, Ingress paved the way for Pokemon, and the ONLY reason Pokemon is popular is because of the Pokemon name. Good for them.

              That does gloss over the fact that Pokemon itself is a hugely successful game franchise in it'd own right with regular new releases that continue to be popular and introduce new gameplay, that has been flirting with this concept for a long time.

              Original pokemon was the game that justified owning a link cable (so you could trade and battle with your friends), later generations introduced the pedometer tracking your steps so walking in the real world hatched your eggs, and the internet based trade and battle

      • by jeti ( 105266 )
        I can't see the added market valuation. Assuming that you pay 200k per year for a developer, 11 billion pays for 55,000 man-years. That amount of money is just crazy.
        • by bws111 ( 1216812 )

          Market valuation is simply the stock price times the number of outstanding shares. The company sees none of that money. The only thing market value is useful for is an approximation of how much you would have to spend to buy the company.

      • Nintendo had NOTHING to do with this, it was created by Niantic. Nintendo still doesn't want to release games outside of its own crappy consoles.

        Pokemon Go only exists because of Niantic's previous game, Ingress, which has been out for 3 years now. Everything in Pokemon Go from the location of all pokestops and gyms to the way the game functions and tracks you as you move throughout the world and your travel speed was done in Ingress 3 years prior.

        • Re: Two days? (Score:5, Insightful)

          by Anonymous Coward on Monday July 11, 2016 @01:38PM (#52490697)

          3 years and their game went nowhere. Nitendo slaps their name and IP on it and it is one everyones phones in 2 days. Tell me again that Nintendo had nothing to do with it.

      • That's a pretty quotable remark your kid made :-)
    • Welcome to the world of the stock market! This has nothing to do with the value of this game itself, but with investor confidence in a company. This release symbolizes the end of Nintendo's stubborn refusal to make games for anything but their own hardware. That is great news for investors.
  • by XxtraLarGe ( 551297 ) on Monday July 11, 2016 @09:50AM (#52488947) Journal
    Seems more likely to be a fad, especially when things like this [macrumors.com] happen. How many people are going to get mugged trying to catch 'em all?
    • by The-Ixian ( 168184 ) on Monday July 11, 2016 @10:08AM (#52489093)

      This makes sense until you look at the game.

      This thing has staying power.

      It has all the elements of a good game, it:

      - is cool (uses GPS and map data to make a game of outdoor activity)
      - is fun
      - is addictive
      - has continuing progression
      - has pvp aspects
      - has crossover potential (aspects appeal to kids and adults alike)
      - has brand recognition
      - is cheap
      - utilizes hardware you already have
      - has "gone viral"

      In addition, you don't have to walk around at all if you don't want to. You can be in a vehicle. A friend of mine got 1 pokemon while we were driving along the freeway and 1 while on a residential road.

      • by Dins ( 2538550 )

        In addition, you don't have to walk around at all if you don't want to. You can be in a vehicle. A friend of mine got 1 pokemon while we were driving along the freeway and 1 while on a residential road.

        If you're traveling above a certain speed (around 30 mph in the US) it won't work. Yes, you can occasionally grab a pokemon here and there, but it can't really be played reliably at highway speeds. There was a video of a guy who mounted his phone to a drone to play. Which kinda defeats the purpose, but is amusing.

      • by arth1 ( 260657 )

        People said the Wii was cool and had staying power too.
        Yet where you find it now is mainly in attics and basements.

        The problem is that people are willing to physically move and sacrifice time as long as something is new and in, but once that's gone, it will quickly dwindle off, and people go back to the couch and recliner.

        Sure, some will still use it, but the great majority will leave until they jump on the next fad.

        • What is 'staying power'? In this context, I don't think it implies that 10 years down the line this game will still be playing this game. But it will certainly still be popular in a few months or even a few years. It's up to Nintendo (and what the markets are betting on) to capitalize on this success and turn it into a resurgence of everything Pokemon (trading cards, stuffed animals, TV show, and follow-up games)
        • Yet where you find it now is mainly in attics and basements.

          You should mention that you find their owners there, too, so...

        • by Miamicanes ( 730264 ) on Monday July 11, 2016 @01:01PM (#52490401)

          The Wii's longevity is downright AMAZING when you realize it was basically a GameCube with a higher-clocked CPU, slightly more RAM, a normal-sized dvd drive (that STILL couldn't officially play DVDs), and controllers that could have easily been ported to GCN with little more than a receiver hanging from a controller port. Graphically, the Wii literally WAS a GameCube, with EXACTLY the same GPU.

          It's a shame that "Nintendo-type" games are still almost nonexistent on other platforms. If you want to play yet another depressing "if it moves, shoot it!" FPS, or deep simulation or adventure game that fully expects you to dedicate the next 5 months of your life to its mastery, xbox and ps have you abundantly well covered. If you want a game like Pikmin or Chibi Robo... you're almost out of luck. The other platforms have hardware that stomps Nintendo's into the ground, but almost no games I'd ever really want to play. Meanwhile, Nintendo's games are kind of fun, but the low resolution and lack of good anisotropic filtering makes my eyes bleed, and Wii U doesn't offer enough added value to be worth its high price relative to other systems.

        • by cfalcon ( 779563 )

          > People said the Wii was cool and had staying power too.

          It did? The Wii had a successful lifespan. It came out in 2006. The comparable consoles are the PS3 and the Xbox 360.

          > Yet where you find it now is mainly in attics and basements.

          Right next to the PS3s and Xbox 360s, statistically.

        • >People said the Wii was cool and had staying power too.
          >Yet where you find it now is mainly in attics and basements.

          Sounds like someone didn't have Big Buck Hunter and the shotgun controller!

      • by ranton ( 36917 ) on Monday July 11, 2016 @10:50AM (#52489481)

        This game only has potential if Nintendo makes an actual game out of it. As it stands this is the worst Pokemon game I have seen, but with a great gimmick which helped make it go viral (along with brand recognition). I downloaded it and played for a couple days, until I found out what the game play was actually like after level 5 (which only takes an hour or so to get to). The novelty wore off right about then.

        This is an amazing example of how Augmented Reality will create a whole new segment of gaming. But as an actual game Pokemon Go is horrible. It does make me hopeful for the games we will start seeing in the very near future, and Nintendo will likely be at the forefront of those games. But I doubt this game will have much staying power once Augmented Reality games with actual game play come out. If that doesn't happen for a year or more then Pokemon Go will probably stay strong until then.

      • Ingress - is cool (uses GPS and map data to make a game of outdoor activity)
        Ingress - is fun
        Ingress - is addictive
        Ingress - has continuing progression
        - has pvp aspects
        Ingress - has crossover potential (aspects appeal to kids and adults alike) (Actually, Pokemon is very generational, the under 40 crowd
        - has brand recognition
        Ingress - is cheap*
        Ingress - utilizes hardware you already have
        - has "gone viral" (debatable, considering "Brand recognition"

        So from My perspective of comparing Ingress vs PokemonGo!, the

        • by cfalcon ( 779563 )

          What is the equivalent of collecting all the Pokemon in Ingress?

          Ingress has no brand recognition. Half the people I've mentioned that the map data come from Ingress are like, what's that? Whereas everyone knows what a Pokemon is.

          • "Brand Recognition" was left blank. Ingress was a New Game, by a New Company with New Mechanics. The whole thing was "new". Pokemon, while having "brand" recognition, is largely dependent upon Ingress for much of its game play (Gyms, Stops etc). Which is pathetic for a franchise to be dependent on something that has none. When I first saw that, I thought "Lame" .

        • by budgenator ( 254554 ) on Monday July 11, 2016 @04:31PM (#52492183) Journal

          I don't know jack about the poke-verse, but it seems to me that having people collecting virtual goods located at physical locations is tremendous marketing opportunity. Now I look at something on Ebay or Amazon and the adds follow me around for weeks on the internet. Consider looking at paddle boards online then all of a sudden the two store locally that sell paddle boards become pokestops or pokegyms! If retailers are willing to pay for a Google view or a click, imagine what they would pay for getting a meatsack through the door; and if I actually buy, I'd recieve sum in-game credit or an unlock.

          Maybe have a QR code on a drink cup that award a pokemon, occasionally a rare and expensive one, like McD's monopoly game.

          If memory serves me correctly, my Grandson was Poke-crazed in grade school and is now 24ish, single adults with disposable income and little life responsibilities are a highly desirable demographic. Seems to me that this would be really easy to monetize through 3rd party marketing

    • by Rinikusu ( 28164 )

      Don't worry. You go out and someone tries to mug you, they'll see your greasy, cheetos stained shirt and realize it's more work to clean whatever the fuck you might be carrying to bother with.

    • by SumDog ( 466607 )

      I thought that car accident thing was a myth/urban legend.

    • by aliquis ( 678370 )

      Seems more likely to be a fad, especially when things like this happen. How many people are going to get mugged trying to catch 'em all?

      The market may price in other things.

      I've seen claims Nintendo only owned 1/3 (30%?) of the company which actually make the game / of the money from it.
      So 7.5 billion would become 22.5 billion.
      Is the game worth that much? Does it have ads?
      I don't know.

      But more importantly does this show that Nintendo is ok with releasing their games on Android and other consoles and PC? I guess they have already answered that question before but possibly the market price in Nintendo games on other platforms too just not Pok

    • They need to learn the lesson from World of Warcraft. Take a LOT of that early money, and make more and more content. Also respond quickly to negative feedback/bugs etc.
  • (Other than anyone who has been paying attention to Nintendo and has seen them do it repeatedly.)

    • by Z80a ( 971949 )

      Nintendo is not a good company, its a very, very, VERY lucky bad company.
      They're always doing bad moves, but then finding "that thing" that boosts the company value tenfold and allow em to keep doing bad moves forever.
      Donkey kong (a game that was not even supposed to exist, but just to toss the blame of the failure of radar scope on a rookie)
      Famicom (a console where nintendo bought 5 million of chips (to get em cheap) on a era where consoles not called atari sold less than a million of units and atari iself

      • [proceeds to list their biggest hits, and one console made by an entirely different company]

        Heh, troll harder kid.

      • by cfalcon ( 779563 )

        Nintendo haters are so funny. Because luck allows you to be one hundred and twenty fucking seven years old, and the good examples of companies are things that hatched in the last dozen or three years. Ntintendo has cash reserves for miles, refuses to expand out of caution, and has the capital to try their hand at creative innovation.

  • allows players to walk around real-life neighbourhoods

    I don't know what this app actually does, but isn't there a huge liability issue in maybe the pokemon leading a kid to step out in traffic, or into the yard of the local registered sex offender?

    • by Anonymous Coward on Monday July 11, 2016 @10:02AM (#52489063)

      fricken really? Letting your kid play outside in your local neighborhood is now considered a safety issue?

    • by ADRA ( 37398 )

      You use the app stores unless you're 13, so unless one can prove that children were under 13, somehow enticed by Google/Nintendo to break the rules thwen maybe a case could go on.

      But nah, its so much better to have kids cramed away at home for the few minutes they're not in school, because that'll lead to better people in the long run or something... Ultimately it always links back to parents. If they're not going for a walk with their kids either then sure, bad things can happen (with or without a game lea

    • Comment removed based on user account deletion
    • I don't know what this app actually does, but isn't there a huge liability issue in maybe the pokemon leading a kid to step out in traffic, or into the yard of the local registered sex offender?

      Into traffic, not so much. That's the parents' responsibility. Their job might be harder without the PSA of the steamroller flattening the kid into a cardboard cutout, but it's still their job. The local registered sex offender? That's a possibility, but it's unlikely unless he lives in a historic building.

      • by skids ( 119237 )

        but it's unlikely unless he lives in a historic building.

        I just read about a poor sop that lives a few towns over who has a gaggle of people constantly in front of his used-to-be-a-church home.

        Curating the map data properly sounds to me like a pretty impossible task, and given the appalling lack of rigor these things are done with these days, I'd say we are in for quite an interesting news cycle.

        • Curating the map data properly sounds to me like a pretty impossible task, and given the appalling lack of rigor these things are done with these days, I'd say we are in for quite an interesting news cycle.

          You do raise a good point, and if I were in charge of that I would definitely be concerned about registered sex offenders and liability. But that raises the question, what do you do about it? If you try to do something about it and fail, does that increase or decrease your liability as compared to throwing up your hands and claiming that you can't possibly solve such a problem?

          • by skids ( 119237 )

            If you try to do something about it and fail, does that increase or decrease your liability as compared to throwing up your hands and claiming that you can't possibly solve such a problem?

            Yeah, from a pure "stockholder's interest" approach, the funds to do that might be better directed towards lobbying a legislator to sneak something into a farm bill that makes you immune from prosecution for it.

        • by DRJlaw ( 946416 )

          I just read about a poor sop that lives a few towns over who has a gaggle of people constantly in front of his used-to-be-a-church home.

          The public is using public property adjacent to private property? How dare they! We should totally create a buffer zone around homes that is exclusive to the owner. We could call it a "yard." If you wanted to, you could purchase a home with a "yard." If you didn't want to, you could simply suck it up rather than summoning the WHAAAAmbulance.

          • by skids ( 119237 )

            Well, so far this guy seems only to be amused by it. We'll see if that lasts over the course of months/years, or not.

    • by aliquis ( 678370 )

      but isn't there a huge liability issue in maybe the pokemon leading a kid to step out in traffic, or into the yard of the local registered sex offender?

      Hopefully not because that would be retarded.

    • You know the old mantra of the sex offender, gotta catch 'em all!

    • by cfalcon ( 779563 )

      > maybe the pokemon leading a kid ... into the yard of the local registered sex offender

      Don't worry, the local registered sex offender won't be home, he'll be out chasing Pokemon.

    • It's not like they can't call for help!

  • by Anonymous Coward

    Just forge your GPS coordinates.

  • by Anonymous Coward

    One game isn't going to turn around Nintendo. Especially since the game was developed by Niantic, which is part of Google. I'm sure Google gets at least part of any potential profits.

    Also, the fundamentals of Nintendo are shit. The P/E is 160! The dividend is a tiny .85%. One game developed by Google that uses the Pokemon brand isn't going to suddenly turn around Nintendo. I suggest shorting.

  • It sucks that people can't lave others alone.

    But forgetting that "people are real assholes sometimes", here you have a game that leads someone with a multi-hundred dollar smartphone to a location not necessarily controlled by them [arstechnica.com]. May you live in interesting times.

  • This is great news for Nintendo. The marriage of Pokémon to Virtual Reality is a good one which makes this 'work'. They always had VR card games which came with the DS.... but to put this on cell phones which everyone has and combine it with GPS with Pokémon. While VR games and GPS has come before it, undoubtedly, like it or not, this ushers in a new style of gameplay, with lots of possibilities.
    • Except Nintendo had nothing to do with this, it was created by Niantic and it wouldn't have been possible without their prior now 3 year old game, Ingress.

  • I can't wait for Pokemon GO to lead to the demise of any and all location based games. Niantic's other game, Ingress, was the basis for all the locations in Pokemon GO. I've seen an influx of people at the locations of portals. Mind you, there's usually an abundance of portals inside of cemeteries. I, along with others in the area I play, normally don't visit those portals often out of respect. With Pokemon GO and a younger (immature) group more apt to play, they will probably not have that same respect. It

  • by OrangeTide ( 124937 ) on Monday July 11, 2016 @10:22AM (#52489207) Homepage Journal

    It is now on more Android phones than dating app Tinder

    That's only because my wife wouldn't like it if I installed Tinder, but Pokemon are OK.

    Ladies, do you find it strange that your husband is going out at odd hours to "catch pokemon" ?

  • Seems so familiar... (Score:4, Interesting)

    by cyberfunkr ( 591238 ) on Monday July 11, 2016 @10:23AM (#52489217)

    An extremely addictive AR/VR game... Makes people ignore their normal day to day... Some kind of mind control...
    https://en.wikipedia.org/wiki/... [wikipedia.org]

  • I took a walk the other day and everyone was either catching Pokemon or taking weird/creepy photos with their cellphones. All my friends in other countries are playing it. I feel like I'm the only one not playing it. I don't really want something else to get addicted to.

  • Now release Wii-U Zelda dammit.

  • They can create and destroy entire economies. Does Wall Street live on its blood? This has to be some gag that's going to pop the balloon, maybe before November, eh?

  • I gave up on Pokémon Diamond because it was too much work to play once a week to prevent a mass extinction of the trees in the game. No way in hell I'd play a version that makes me go outside and walk around!

  • by dwillden ( 521345 ) on Monday July 11, 2016 @10:43AM (#52489413) Homepage
    Sounds like their second game is a bigger hit than Ingress was. Hope they get a big cut of the profits.
  • For comparison, the WiiU currently is sitting at about $12.8 million [theverge.com]. So Pokemon Go is almost as profitable in a few days without hardware obligations as their latest hardware platform in a few years.
  • by cliffjumper222 ( 229876 ) on Monday July 11, 2016 @05:26PM (#52492565)

    This game is pretty good and much more fun than Ingress. It also has serious incentive to buy stuff in-game, like the incubator. To hatch an egg you have to walk 5K and with only one free incubator, I'm inclined to buy a couple - they're only $1.50 each. Niantic, the company behind the game is a spin out from Google, who in turn were a spin out of the Google Earth team, who were acquired by Google way back when. The Ingress SiFi game has been running for years and you can still spot the mid-20's to 30's crowd every so often in a park trying to take down or protect a portal. That said, Ingress's business model was based on putting portals at places like Jamba Juice to try and attract customers to go there. As far as I know, it didn't really work out. Pokemon GO's approach seems much more likely to pay off.
    Right now, the biggest problem is that the servers keep crapping out. We'll have to change the phrase "Slashdotted" to "PK'd" or "Go'ed" or something because they are hammered. If you don't think this is a big thing, go to a park and look for teens hanging out looking at phones. Then tell them you haven't reached level 5 yet and they'll nod knowingly.

According to the latest official figures, 43% of all statistics are totally worthless.

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