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Nintendo's shares lacking GO

Monday, July 25, 2016 - 01:17

Shares in Nintendo tumble as much as 18 percent after the company say Pokemon GO will have a limited impact on its earnings - their biggest setback so far after a huge run-up on the smash-hit game. David Pollard reports.

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You've got to catch them all .... But Nintendo's announcement that Pokemon go won't net them big profits has seen their shares catch a cold. The news sending stocks tumbling almost 18% Monday The game's release triggered massive buying in Nintendo's shares, so as Reuters Markets correspondent Vikram Subhedar says they're still looking healthy. SOUNDBITE (English) Vikram Subhedar, Chief Correspondent, European Stock Markets, Reuters, saying: "Even with today's fall they're up about 60 percent since the day before Pokemon Go launched in the US." Nintendo's announcement came on Friday, with a warning that the smash hit game would only have a limited impact on earnings. Pokemon go was developed by a US affiliate, And Nintendo says income from licensing and fees will be limited. But that might just be the short term outlook (SOUNDBITE) (English) INDEPENDENT MARKET ANALYST, DARREN SINDEN, SAYING: " I think as a test case it has done very well. Ten million downloads in a day in Japan, of course the hard part of all of these things is monetising them, I believe Nintendo have set a precedent and I hope they will be able to capitalise on that going forward." Pikachu and co may have largely eluded Nintendo's balance sheet at the moment. But with the Kyoto-based gaming company set to report first-quarter earnings on Wednesday, investors will be looking to see where they may pop up next.

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Nintendo's shares lacking GO

Monday, July 25, 2016 - 01:17