StyM
07-26-2016, 05:23 AM
http://www.tomshardware.com/news/nintendo-stock-price-drop-pokemon,32321.html
Three days ago, Nintendo held a special investor meeting to discuss the financial ramifications of the recent Pok?mon Go phenomenon. During the meeting, Nintendo clarified that it does not own a controlling interest of The Pok?mon Company. Nintendo's stock price has dropped significantly since it revealed this fact.
Although Nintendo doesn?t own The Pok?mon Company, it does own a portion of the company and holds 32 percent voting power. The revelation means that Nintendo does benefit from the success of The Pok?mon Company, but neither company is directly responsible for Pok?mon Go.
Niantic actually produced Pok?mon Go after it licensed the Pok?mon IP. The Pok?mon Company will receive the licensing fee in addition to some compensation for help developing and operating Pok?mon Go, but the overall financial impact on the company will be rather limited.
Immediately following the release of Pok?mon Go, Nintendo?s stock prices shot up, jumping from roughly 14,490 JPY ($141 USD) to 20,260 JPY ($197 USD) in just a few days. Stock prices peaked at 31,770 ($300.21 USD) on July 19 and then settled at 28,220 JPY ($266.67 USD) until the investors meeting on July 22. Since then, stock prices have fallen to 23,220 JPY ($219.42 USD).
Overall, Nintendo?s stock price is still elevated compared to its typical cost before the launch of Pok?mon Go, but it may continue to drop over the next several days.
Three days ago, Nintendo held a special investor meeting to discuss the financial ramifications of the recent Pok?mon Go phenomenon. During the meeting, Nintendo clarified that it does not own a controlling interest of The Pok?mon Company. Nintendo's stock price has dropped significantly since it revealed this fact.
Although Nintendo doesn?t own The Pok?mon Company, it does own a portion of the company and holds 32 percent voting power. The revelation means that Nintendo does benefit from the success of The Pok?mon Company, but neither company is directly responsible for Pok?mon Go.
Niantic actually produced Pok?mon Go after it licensed the Pok?mon IP. The Pok?mon Company will receive the licensing fee in addition to some compensation for help developing and operating Pok?mon Go, but the overall financial impact on the company will be rather limited.
Immediately following the release of Pok?mon Go, Nintendo?s stock prices shot up, jumping from roughly 14,490 JPY ($141 USD) to 20,260 JPY ($197 USD) in just a few days. Stock prices peaked at 31,770 ($300.21 USD) on July 19 and then settled at 28,220 JPY ($266.67 USD) until the investors meeting on July 22. Since then, stock prices have fallen to 23,220 JPY ($219.42 USD).
Overall, Nintendo?s stock price is still elevated compared to its typical cost before the launch of Pok?mon Go, but it may continue to drop over the next several days.