How did Nintendo investors not realize this? This has been common knowledge since Pokemon Go was announced last year. Shares in Nintendo fell 18% today wiping out $6.7 billion in market value. Thankfully the Tokyo stock exchange rules prevent share prices from moving more than 18% in a single day or things could have been worse.
The correction comes after Pokemon Go’s release almost doubled Nintendo’s stock through Friday’s close, adding $17.6 billion in market capitalization. Nintendo is a shareholder in the game’s developer Niantic Inc. and Pokemon Co., but has an “effective economic stake” of just 13 percent in the app, according to an estimate by Macquarie Securities analyst David Gibson.
by Steve via HardOCP