Nintendo Stock Goes Way Up Thanks to Pokemon GO
Nintendo is rolling in the green thanks to Pokemon GO. Nintendo's stock price rose 9% one day after the release of Pokemon GO, a new augmented reality mobile app that allows players to catch and battle Pokemon in the real world. Thanks to the surge in stock prices, Nintendo now has a stock value of $23 billion.
Pokemon GO surged to the top spot on the Apple App Store and the game's servers crashed repeatedly due to the overwhelming amount of users. While Pokemon GO is free to play, many financial analysts believed the game would be profitable for Nintendo due to the optional microtransactions and massive user base. After all, if one million users spent $0.99 a day on the app (the lowest microtransaction tier), Nintendo would see $1 million dollars in profit a day.
Nintendo is in the midst of shifting their gaming model to include mobile games. After the release of Miimoto, a social media app that allows players to interact with one another via Miis, Nintendo has promised to release at least four more mobile apps this year. Nintendo will also release a new gaming console in 2017. Nintendo expects mobile gaming to become a major profit center for the company, with expectations that it will increase their profits by up to 33%.