Nintendo shows investors that they arent the creators of Pokemon Go, Stock DISASTER! CNET

in #pokemon8 years ago (edited)

Pokemon's share price more than doubled in the two weeks -- but it dropped by 18 percent on monday

Pokemon Go has taken off so well that Nintendo's stock doubled! On Friday, however, the company reminded investors that it didn't actually make the game, causing stocks to drop by 18 percent on Monday.

"[Pokemon Go] is developed and distributed by Niantic," Nintendo said in a statement on friday. "The Pokemon Company, which is an affiliated company of Nintendo, holds the ownership rights to Pokemon."

It adds that Nintendo owns 32 percent of The Pokemon Company and, therefore, Pokemon Go's impact on Nintendo's business "is limited." 

This prompted Nintendo's stock to fall by 18 percent on Tokyo's Stock Exchange, according to Bloomberg, dropping the company's market value by roughly $6.7 billion. This is likely an omen of things to come, with the publication noting that 18 percent is the most a company's stock can drop in a day due to Tokyo Stock Exchange regulations.

This sudden fall to Nintendos stock can effect many. But most of all it hurts Nintendo the most. They might wish that they kept their mouth shut now ;)

While this may be bad news for the company, Japanese fans are likely still on a high after Pokemon Go finally launched in their country last Thursday.

Oh well..

Information sourced from: cnet.com

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