Why Nintendo Stock Crash? - Pokemon Go Bubble Burst

Most viral game 'Pokemon Go' Fever started lowering - Nintendo suffers 18% Stock fall in a single day 

Japan - Nintendo share price was almost double within a week of the launching of Pokemon Go. But it suffers a fall of 18% in a single day as they've shared that they didn't actually make the game.

Why Nintendo Share Price Lower Down?

A graph showing loss in Nintendo Share Price in a single day.
  • It seems like Most of the shareholders are beginning to make the profit out of the Pokemon Go bubble. They are selling previously purchased Nintendo share at higher prices now. Probably it is the main reason behind the degrading of the share price. As a result, Nintendo suffers almost 18% loss in a single day that cost around 45 Crores INR.
  • Pokemon go is yet not released in the most of the countries including India. Since people find an alternative to download via hook or crook. Even though India users are not satisfied with the several problems occurred in Pokemon go like "GPS Signal not found" and The “unable to authenticate” error.
  • Another mega reason for Nintendo share degradation is due to a sentence they've mentioned in a note is that "Pokemon Go is developed and distributed by Niantic". Niantic is the startup spun out of Google in last year.

They've added many shocking things in content of the announcement.
"The Company owns 32% of the voting power of The Pokémon Company. The Pokémon Company is the Company’s affiliated company accounted for by using the equity method. Because of this accounting scheme, the income reflected on the Company’s consolidated business results is limited."
Said Nintendo.

They've (Neither Nintendo nor Niantic) not revealed the amount of licensing fee in numbers.

Despite Monday Loss, the total Nintendo price is up by 67% in last month.

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