Pokemon Oh: Shares in Nintendo tumble after electronics giant reveals game will have a limited impact on its bottom line

 
Hayley Kirton
Follow Hayley
Pokemon GO Fans Converge At Sydney Opera House
The electronics giant gently reminded investors it won't see the full financial benefit of the game's success (Source: Getty)

Players may be catching all the Pokemon, but investors were less than impressed today after Nintendo revealed it would not be catching all the profits.

The electronics giant issued a note on Friday to remind shareholders it owned just 32 per cent of the voting power in The Pokemon Company, the entity which will receive licensing fees as well as payment for collaboration in developing the popular game.

As a result, Nintendo said, the impact of the game's success on its own profits would be "limited".

"Taking the current situation into consideration, the company is not modifying the consolidated financial forecast for now," the statement added.

The company also noted the money it hoped to raise from sales of Pokemon GO Plus, a peripheral device designed to be used alongside the game, had already been accounted for in its forecasts set out in April.

Read more: Pokémon Go: Should you invest in Nintendo?

Investors were unimpressed by the news. Shares in Japan fell by 17.7 per cent today to ¥23,220. Shares in the US closed down 10.6 per cent on Friday at $29.

Nintendo Nintendo | mobile image

The game's widespread popularity had led to Nintendo's share price rocketing, doubling its pre-release value at one point and taking its Japanese listing to a five-year high.

Read more: A beginners guide for reluctant Pokemon Go players

However, shares were starting to look lacklustre last week, when their price fell four per cent in the US and 13 per cent in Japan on Wednesday.

Pokemon Go was released at the start of this month, and the free-to-download game immediately shot to the top of Apple's US iTunes store.

The game gained a similar level of popularity when it was launched in the UK a week later.

Related articles