Nintendo (NTDOY) Shares Soar on Pokémon Go Success
Shares of Nintendo Company Ltd. (NTDOY) reached $244 USD per share in overnight trading on the Tokyo stock exchange as the company continues to reap the benefits of its newly launched mobile app, Pokémon Go, which was released to the public on July 6th. In this morning’s premarket, Nintendo ADRs are trading at $31.49, up +4.96 or +18.72 percent. The ADRs closed at $26.52, down -1.06 or -3.86 percent in Wednesday’s regular trading session.
Kyoto, Japan based Nintendo Company Ltd. was originally founded by Fusajiro Yamauchi as a producer of hanafuda playing cards in 1889.
Nintendo’s release of Pokémon Go last week began with the mobile app being downloaded to more Android phones than Tinder in the United States on its first day. On the second day, the app had been installed on more than five percent of all Android devices in the United States, bringing in $5-$6 million in revenue and taking the company’s stock up more than 20 percent in the best trading day for the shares in 30 years, adding a whopping $9 billion to the company’s market capitalization.
Nintendo’s release of Pokémon Go has significantly mitigated the effects of company’s latest failed console, the Wii U, which has flopped even more than the company’s previous failed console, the Game Cube. The Wii U has sold only 12 million units in the four years it has been on the market. Nintendo was expecting to make a comeback on consoles with its release of its upcoming console the NX.
The Game Cube, launched in 2001, sold only 22 million units total, which compares to Sony’s Playstation 2, which sold 155 million units and Microsoft’s Xbox that sold 26 million machines. The Wii U followed Nintendo’s successful release of the Wii in 2006, which put the company back in the spotlight, selling over 100 million units worldwide.
The release of Pokémon Go has again put Nintendo at the forefront of the gaming industry. According to Sensor Tower, the mobile app has so far been downloaded 7.5 million times on Google Play and the iOS App Store and according to SurveyMonkey, the app is the biggest mobile game in U.S. history as measured by active users. The game got 21 million active daily users in just 24 hours in the United States, compared to the success of DrawSomething with 16 million users and Candy Crush with 20 million users.
Pokémon Go has not yet been released in continental Europe, or the company’s native Japan, due to concerns of overloaded game servers and safety issues. The most impressive feature of the game so far is the average time people play the game: 43 minutes per day, which is more than the average usage time spent on popular apps such as Snapchat, WhatsApp or Instagram.
Pokémon Go has just been released in the UK. An official statement from Nintendo was posted earlier today on Twitter, Google and Facebook, which said, “UK Trainers, the wait is over. Pokémon Go is now officially available to be installed from Google Play or iTunes.”
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