Reuters - Video

Edition: US | UK | IN | CN | JP

Finance Videos

Nintendo $50 million down, but not out

Wednesday, July 27, 2016 - 01:15

A $50 million loss may take the shine off the launch of Pokemon Go, but it's not all bad for Nintendo. This round of quarterly earnings didn't include any profits from the hit app, and in general, analysts are confident there will be good news to come next time around. Ryan Brooks reports.

▲ Hide Transcript

View Transcript

It may have seen its market value bombed up by half... But the Pokemon GO payoff still looks some way away for Nintendo. The company chalking up a 50 million dollar loss in its first quarter this year... taking a beating from currency swings since the vast majority of its sales are made overseas. Nintendo took the unusual step ahead of Wednesday's earnings report to make it clear Pokemon GO wouldn't show up in the numbers... Though even when it eventually does, there's no guarantee it'll be an automatic payday... That's because profits will be divided between Nintendo, The Pokemon Company and Niantic, the game's developer. Still, analysts are generally upbeat about about the company's ability to make money from the app... it's early success signaling strong demand if Nintendo were to games like Super Mario and the Legend of Zelda the augmented reality treatment... shifting away from home consoles and into the palm of your hand. Nintendo is also hoping to pull in money from Pokemon Go Plus, a wireless accessory that alerts players to nearby Pokemon so they can keep their eyes off their phones. That was supposed to go on sale at the end of July, but Nintendo pushed back its release to September on Wednesday, saying the software still needs tinkering.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Nintendo $50 million down, but not out

Wednesday, July 27, 2016 - 01:15