Nintendo Stocks Continue To Surge As More Pokemon Go Numbers Emerge
Nintendo’s Pokemon Go still has yet to launch in Asian and European territories but the game’s rapid rise in both popularity and profitability over the last few days has seen the Japanese company’s stock soar.
Developed by former-Google startup Niantic Inc, the app uses augmented reality and GPS technology to allow players to seek out and capture the fictional monsters in the real world.
It’s been occupying the #1 spot on both Apple’s App Store and Google Play for several days now, outranking reigning champions like Clash of Clans and even popular social media apps like Twitter and Tinder.
Research firm Sensor Tower estimate Pokemon Go has already reached 7.5 million downloads in the US and claim the game is bringing in $1.6M daily in in-app purchases on the Apple’s App Store.
While the app itself is free, users are able to spend money via micro-transactions for additional resources and items that can be used in the game.
The game’s US and ANZ launches saw Nintendo stock rise 10% but this number has now risen 36% since Thursday – approximately $7.5 billion USD in market value.
It’s the highest their shares have risen since October 2015 and the company’s highest one-day surge since 1983.
However, it’s not all good news for developer Niantic.
Some groups have expressed concern over the privacy settings accessed by the app.
According to the Wall Street Journal, “signing up for the service using an iPhone gave the game maker permission to access all data associated with the Google account, including email, calendar and contact information.”
In addition, the game’s international roll-out has been plagued by server outages due to overwhelming demand.
Whether or not this popularity can be sustained is another potential issue, though additional content and features are said to be in the works that may extend the game’s lifespan.
Nintendo also plan to release a $35 portable add-on called Pokemon Go Plus to enhance the experience for hardcore players.