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Pokemon adds $7.5 bln to Nintendo market value

Monday, July 11, 2016 - 01:54

Nintendo shares soared again in Japan on Monday, bringing market-value gains to $7.5 billion in just two days. Graham Mackay reports.

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Last week's surge was just a beginning. Shares in Nintendo up a staggering 24-and-a-half percent on Monday. And it's all thanks to these guys. Investors are getting fired up about Pokemon GO. A video game for smartphones where players walk around their real-life neighborhoods looking for virtual characters. It's been a huge hit in the U.S. since it launched last week. Adding seven-and-a-half billion dollars to Nintendo's market value in just two days. But according to Robyn Mak from Reuters Breakingviews, conquering Japan will be the true test of its success. (SOUNDBITE) ROBYN MAK, COLUMNIST, REUTERS BREAKINGVIEWS (ENGLISH) SAYING: "This global smartphone gaming market is roughly a thirty billion dollar market last year, and Japan is an extremely important part of that. Japanese gamers, they contributed nearly forty percent of that market. So, for any smartphone developer to become successful, Japanese gamers are going to be a very important demographic for them to target." Based on stats from the U.S., it's hard to imagine Pokemon GO not being a hit in Japan. It shot to number on spot on iTunes almost overnight. And is on course to soon have more active daily users than twitter. But that doesn't mean success on the other side of the world is guaranteed. (SOUNDBITE) ROBYN MAK, COLUMNIST, REUTERS BREAKINGVIEWS (ENGLISH) SAYING: "This is quite a new concept, to have gamers go out into the real world and play their games. Usually in Japan, the gamers are people who sit on trains on long commutes, and so this might actually be quite a shift for these gamers." If Pokemon GO is a hit it Japan it'll be a huge sign to investors that Nintendo can make it in the mobile market. Analysts say the game could boost the company's bottom line by up to thirty percent. And with characters like Super Mario and Donkey Kong waiting in the wings. Mobile Pokemon go could be just the beginning.

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Pokemon adds $7.5 bln to Nintendo market value

Monday, July 11, 2016 - 01:54