Every once in awhile we see a video game developed that takes the world by storm. Right now, that game is Pokemon Go. Unfortunately, with so many players playing Pokemon Go, servers are having issues loading Pokestops. Regardless, the game is practically a cash cow. But Nintendo is only getting a small piece of Pokemon Go revenue. At least that’s what analysts are saying.
According to Macquarie Capital Securities Analyst, David Gibson, Nintendo only gets 10 percent of Pokemon Go revenue. It isn’t earning a lot from the game directly.
However, indirect revenues are encouraging and may see a boost in the future.
We presume that out of every 100 units earned at the App Store, 30 would go to Apple, 30 to [software developer] Niantic, 30 to Pokemon and 10 to Nintendo. Hence, we don’t think Nintendo will earn much directly from the game. However, Nintendo will earn income from its equity-accounted income of owning 33 percent of Pokemon Company.
For those who don’t know, Pokemon is a separate company which owns the rights to all of the Pokemon. Meanwhile, Nintendo owns about a third of its share.
Nintendo will see some of that Pokemon Go revenue but it isn’t raining money.
Pokemon Go is only available in three countries for now – New Zealand, Australia and US. The game has been immensely successful crossing 7.5 million in downloads.
Furthermore, it roughly brings $3 million in revenue per day. Pokemon Go is the new internet craze even beating Twitter and Tinder in term of installs.
CEO and founder of Niantic, John Hanke, recently discussed that, their previous game Ingress helped them to chose Pokestops and Gyms locations in Pokemon Go.
According to Hanke, Ingress players helped Niantic to create the data pool to choose Pokestop locations. Even if the direct revenue might not be that attractive, the rise in stock value and the immense popularity of the game are good signs for the company.