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Nintendo Shares Plunge 17% After Saying Pokemon Go’s Impact Is Limited

Gator86

Member
mobile gaming is garbage and anyone who actually wants nintendo to seriously develop mobile game and focus resources on developing mobile games doesn't actually care about games as a medium and wants one of the most consistent and greatest developers to participate in the hyper capitalistic race to the bottom that is the mobile gaming

you want to destroy gaming

This is fucking amazing. Top tier fanboy hysterics, would read again.
 

DrWong

Member
They should have bought Niantic 2 years ago, let them develop GO and now their cut would have been considerably higher.

But that could had only happened if they saw mobile gaming as anything else that as a stupid marketing tool.
Erf...

It's like there's only one actor in a deal involving more than 3 partners and a mega cross IP in the real world.

"They should have bought this, they should have sold that, they should have..."

The likely scenario is everyone is ok with the situation because it was dealt that way, not because a fight between these entities. It's the understanding of a mutual interest: Niantic does what it wanted, TPC and the PK owners have their killer app, Google is pushing its AR strategic investment and keeping Niantic close. Everybody is taking a cut. Everybody is winning.
 
They should have bought Niantic 2 years ago, let them develop GO and now their cut would have been considerably higher.

But that could had only happened if they saw mobile gaming as anything else that as a stupid marketing tool.

Was Niantic for sale? They were an internal startup within Google before being spun off. They don't strike me as some small mom and pop startup that needed to be desperate for any influx of cash. Mind you, I'm not an expert in Silicon Valley venture capitalism. However, I just don't know if I see this as a situation where Nintendo was necessarily in a position to just buy them up even if they were more aggressive about mobile.
 

JoeM86

Member
Is that not...literally exactly what I was highlighting? You are a fool if you don't think the suits at nintendo wish they had been more involved and had more of a stake in the app.

You do realise I've been the one that has been informing and correcting people about their involvement of late, right?

You're implying Nintendo hates themselves for being less invested and so forth. You have a lack of understanding in the Pokémon franchise ownership

Because they don't own pokemon, they only have 32% stake/share in pokemon Co. They also mostly fronted less than 20 Million for backend of the app to use googles infrastructure. They don't own pokemon just they are the main publisher for console games of pokemon.

That's not entirely true. They co-own Pokémon. All trademarks are under Nintendo, Game Freak and Creatures Inc, not The Pokémon Company. They still own the franchise. The Pokémon Company has ownership rights, but that does not mean they own the franchise. They manage the franchise. You essentially have it a bit backwards

Surely Go has boosted the brand, though? Like a thousand fold?

Surely it will impact them by proxy through the new DS games and any other Pokémon-related product they release. They could pop on a 70 pence shit little Pokémon app on the store, doing anything, and make millions upon millions.

There have been numerous Pokémon apps, many of which got shut down within a year because they weren't profitable. Pokémon Comaster, a game that came out on iOS and Android in April, has only just hit a million downloads. Pokémon doesn't guarantee success.
 

Papacheeks

Banned
It's a guess from an analyst. I understand that the article isn't great but at least read it guys.

I suggest you take a look at this post:
http://www.neogaf.com/forum/showthread.php?t=1008721&page=1#post155571604

Poor joe keeps linking it around but nobody bothers to read it lol

I take it you didn't watch the video in the link on this thread? It explains in simple terms Nintendo's stake in Pokemon. I already know about the other co-owners. What makes me a little iffed is you think my response was not talking about that? ANd my response doesn't discredit or disregard that information. I just simplified it for the person who was asking. If what i was saying was wrong then say I'm wrong.

But the video on bloomberg link literally simplifies Joe's thread in 2 minutes on what NINTENDO's involvement in the brand means and actually how much they will see from the app % wise.

Nothing I said discredits the info.
 

Papacheeks

Banned
You do realise I've been the one that has been informing and correcting people about their involvement of late, right?

You're implying Nintendo hates themselves for being less invested and so forth. You have a lack of understanding in the Pokémon franchise ownership



That's not entirely true. They co-own Pokémon. All trademarks are under Nintendo, Game Freak and Creatures Inc, not The Pokémon Company. They still own the franchise. The Pokémon Company has ownership rights, but that does not mean they own the franchise. They manage the franchise. You essentially have it a bit backwards

According to Bloomberg they do not own the characters.

ANd your info literally says who owns Pokemon and it's characters which is Pokemon CO. Not Nintendo, and bloomberg video even says that.
 

Akki

Member
KingV said:
I don't think anyone who has posted here understands why what they're saying means what it means.

Specifically, Nintendo says they have the Pokemon Company on their balance sheet under the equity ownership accounting method. when you do that, that means that Nintendo can't actually recognize the revenue from Pokemon Company directly under N's income statement because it is not their income. Instead Pokemon company will hold said cash on their books, so that Nintendo doesn't have to then pay taxes on the dividends received from Pokemon a Company by monetizing it. This way their investment grows in value but with no tax implications.

This doesn't mean that Pokemon company is not making bank on Pokemon Go, they probably are, it just means that the revenue will largely stay on Pokemon Company's books.

I think there is like some deferred tax liability stuff you will see on N's books... But I can't remember explicitly.

Quoting this because no one seems to pay attention.
 

pastrami

Member
This is correct, of course. It's just using something irrelevant (correct contextual usage of prefix ftw) when the standard word makes more sense and will provide more effectiveness to your intent.

Grammar!

Psh, English, a language that literally changes when people literally can't wrap their heads around a word's meaning.
 
If they fully did where are they getting 13% from?
Because there's a lot more to Pokemon than just the characters, and a lot more to making a game than owning the characters. Unlike the Pokemon handheld games, Nintendo didn't even publish this game, The Pokemon Company did.
 
Erf...

It's like there's only one actor in a deal involving more than 3 partners and a mega cross IP in the real world.

"They should have bought this, they should have sold that, they should have..."

The likely scenario is everyone is ok with the situation because it was dealt that way, not because a fight between these entities. It's the understanding of a mutual interest: Niantic does what it wanted, TPC and the PK owners have their killer app, Google is pushing its AR strategic investment and keeping Niantic close. Everybody is taking a cut. Everybody is winning.

I'm not sure Nintendo is really OK with this.

Probably because this went clearly in a direction they didn't expected.

Was Niantic for sale? They were an internal startup within Google before being spun off. They don't strike me as some small mom and pop startup that needed to be desperate for any influx of cash. Mind you, I'm not an expert in Silicon Valley venture capitalism. However, I just don't know if I see this as a situation where Nintendo was necessarily in a position to just buy them up even if they were more aggressive about mobile.

I guess the harder part was to deal with the part Google owned, but they could have easily got most of the ownership. I mean Ingress wasn't really a very successful product they could shove to the face of potential buyers.

And Nintendo has the money and the IP's to become a very attractive buyer for every mobile startup out there.

One thing is for sure, Niantic cost now WAY more with Pokemon GO that with Ingress 2 years ago.
 

BGBW

Maturity, bitches.
my experience is entirely opposite. friends who are obsessed with pokemon go laughed in my face when i asked if they'll buy sun/moon this holiday.

anything newer than the first 250 are "shit".

Hope you showed them the majestic beauty that is Stunfisk to make them see the error of their ways.
 

jroc74

Phone reception is more important to me than human rights
Was Niantic for sale? They were an internal startup within Google before being spun off. They don't strike me as some small mom and pop startup that needed to be desperate for any influx of cash. Mind you, I'm not an expert in Silicon Valley venture capitalism. However, I just don't know if I see this as a situation where Nintendo was necessarily in a position to just buy them up even if they were more aggressive about mobile.

Wow.

Google....man...Google. Think they are thinking about what ifs now?

Off topic, but Google has come such a long way from being just a search engine. An amazing success story there.
 

Zalman

Member
According to Bloomberg they do not own the characters.

ANd your info literally says who owns Pokemon and it's characters which is Pokemon CO. Not Nintendo, and bloomberg video even says that.
Nintendo owns Pokémon and co-founded TPC. They have the final say in what happens to the franchise.
 

Orayn

Member
If they fully did where are they getting 13% from?

Nintendo didn't publish the game plus they only own part of The Pokemon Company and an even smaller part of Niantic. 13% may not be the precise figure but it's probably somewhere in that ballpark.
 

DrWong

Member
I'm not sure Nintendo is really OK with this.

Probably because this went clearly in a direction they didn't expected.




I guess the harder part was to deal with the part Google owned, but they could have easily got most of the ownership. I mean Ingress wasn't really a very successful product they could shove to the face of potential buyers.

And Nintendo has the money and the IP's to become a very attractive buyer for every mobile startup out there.

One thing is for sure, Niantic cost now WAY more with Pokemon GO that with Ingress 2 years ago.
Eeeeerf² ???

Business fiction right here: You Know Nothing, Jon Muscle.
I mean, it's probably the opposite you know? They're happy because that's the deal they made, that's was the goal of the deal...?
 

Azerare

Member
my experience is entirely opposite. friends who are obsessed with pokemon go laughed in my face when i asked if they'll buy sun/moon this holiday.

anything newer than the first 250 are "shit".
This. Most people are nostalgia fueled or jumping on the latest fad.
 

N.Grim

Member
except no one is playing pokemon go and thinking "woah, I've got pokemon fever! time to buy a $100 2DS and the new, $40 pokemon with a bunch of new pokemon I don't care about this november!"

nowadays, most peoples "gaming" experience starts and ends with mobile.

You may need to check the prices of the "real" games before and after Pokemon Go, or the last UK data for various Pokemon games
 

~Cross~

Member
I'm guessing the 13% figure can be pretty credible assuming 50/50 split between Niantic and TPC. 100%-30%(Google/Apples cut)=70% of the revenue generated. 50/50 means 35% of the initial revenue is given to each of the remaining entities. TPC is made of Nintendo and two other private entities. Split that up near equally and you get close to the 13% of the initial revenue.

Overall its a pretty fair split for everyone. It just seems that nintendo gets the shaft, but its not really the case.
 

Busaiku

Member
Well they didn't publish it unlike the mainline Pokemon games so I guess no.
They don't publish any Pokémon games outside of their own hardware.
That includes Pokémon Shuffle, which they published on 3DS, but are not mentioned in the mobile release.
 
Eeeeerf² ???

Business fiction right here: You Know Nothing, Jon Muscle.
I mean, it's probably the opposite you know? They're happy because that's the deal they made, that's was the goal of the deal...?

The deal is one thing, what result you get of one deal is another.

I don't think is fanfiction to say that Nintendo didn't expected this outcome, because if you add Nintendo comments on mobile gaming, and Pokemon GO specifically you can see clearly that it was indeed the case.
 

DrWong

Member
Nintendo didn't publish the game plus they only own part of The Pokemon Company and an even smaller part of Niantic. 13% may not be the precise figure but it's probably somewhere in that ballpark.
If TPC get 30% Nintendo get 10% of the (monetization) pie.

I would bet all my amiibo their stake in all the other companies involved (Creatures, Gamefreaks, Niantic, ) account for more than 3% of the (monetization) pie.
 

JoeM86

Member
But not this game correct?

Nintendo invested in Niantic for this game.
Nintendo also are developing Pokémon GO Plus.
The concept was developed by Iwata with Ishihara and Hanke

It's erroneous to say Nintendo have little to do here. It wouldn't have happened without Nintendo okaying it
 

4Tran

Member
Nintendo didn't publish the game plus they only own part of The Pokemon Company and an even smaller part of Niantic. 13% may not be the precise figure but it's probably somewhere in that ballpark.
Which is not bad given that they barely did any work on the game. The problem here is that Pokemon Go is more popular now than Pokemon itself is and Nintendo doesn't have much that can leverage that popularity.
 

daemonic

Banned
It was never sustainable. Of course people selling the stock most likely don't realize that Sun and Moon are releasing in the fall, with PokeGo being a factor in driving good sales when it's out.
 

vinnygambini

Why are strippers at the U.N. bad when they're great at strip clubs???
The deal is one thing, what result you get of one deal is another.

I don't think is fanfiction to say that Nintendo didn't expected this outcome, because if you add Nintendo comments on mobile gaming, and Pokemon GO specifically you can see clearly that it was indeed the case.

It is.

Nintendo is involved and was involved from the inception of the project with TPC. Why spend company resources and acquire a partial stake in its developer if you believe Pokemon GO was going to be a fluke?
 

DrWong

Member
The deal is one thing, what result you get of one deal is another.

I don't think is fanfiction to say that Nintendo didn't expected this outcome, because if you add Nintendo comments on mobile gaming, and Pokemon GO specifically you can see clearly that it was indeed the case.
You're taking what you hope/want to see as facts, I mean there's nothing supporting your kind of logic. It's like "they didn't expect to be so successful, their plan failed". Doomed?
 

Asd202

Member
Nintendo invested in Niantic for this game.
Nintendo also are developing Pokémon GO Plus.
The concept was developed by Iwata with Ishihara and Hanke

It's erroneous to say Nintendo have little to do here. It wouldn't have happened without Nintendo okaying it

Sure but financial wise there not the ones reaping most of the benefits and that's the key here.
 

Vancouver

Member
my experience is entirely opposite. friends who are obsessed with pokemon go laughed in my face when i asked if they'll buy sun/moon this holiday.

anything newer than the first 250 are "shit".

Yeah, my anecdotes are like yours.

My friends and I were all up in Pokemon during the Red/Blue/Yellow days and Pokemon Go has been a nice nostalgic trip. But we aren't going back to the core games.

My girlfriend is generally a non-gamer (im converting her slowly) but she is obsessed with Pokemon Go. She asked to see what the normal games are like and i showed her videos and they didn't interest her. The draw for her with Pokemon Go is its streamlined search, capture, train and evolve routine, with the gym battles being a bonus. The mainline games add a depth that she isn't interested in.
 
It is.

Nintendo is involved and was involved from the inception of the project with TPC. Why spend company resources and acquire a partial stake in its developer if you believe Pokemon GO was going to be a fluke?

I didn't say the expected a fluke.

Just that they didn't expected an incredible social phenomenon that is registering records in revenue in the mobile space.

You're taking what you hope/want to see as facts, I mean there's nothing supporting your kind of logic. It's like "they didn't expect to be so successful, their plan failed". Doomed?

Then I think I can say the same for you assertions, then?

And who's talking about "doomed" here? Only you crearly.
 

Zalman

Member
Sure but financial wise there not the ones reaping most of the benefits and that's the key here.
Nintendo might only get ~10% directly from the app (+ 1/3 of what TPC makes as a whole), but they are benefitting from increased brand awareness of their IP. Sales of 3DS Pokémon games have gone up since Pokémon Go launched.
 

jroc74

Phone reception is more important to me than human rights
Doing some reading I see Google still is involved with Niantic in some ways.

Smart move to not be completely removed from them.
 

wmlk

Member
Yeah, my anecdotes are like yours.

My friends and I were all up in Pokemon during the Red/Blue/Yellow days and Pokemon Go has been a nice nostalgic trip. But we aren't going back to the core games.

My girlfriend is generally a non-gamer (im converting her slowly) but she is obsessed with Pokemon Go. She asked to see what the normal games are like and i showed her videos and they didn't interest her. The draw for her with Pokemon Go is its streamlined search, capture, train and evolve routine, with the gym battles being a bonus. The mainline games add a depth that she isn't interested in.

Sales have very clearly gone up for mainline Pokémon games. Not everyone is interested, but no one expected that to happen anyway.
 
Re: What does this mean for Sun & Moon?

I don't necessarily see any reason to go crazy in one direction or the other just yet. I know this isn't bold of me to say so, but I prefer just to wait and see. Honestly, I do think that this raises a ton of awareness for the franchise that can only mean good things for the mainline games. However, I do understand wanting to err on the side of being conservative in terms of whether or not Go players would want to pick up the traditional core games.

Basically, I'm just saying that I trust neither the "none of my friends give a shit about the handheld games" anecdotes nor the "everyone I know went out and bought a 3DS and preordered both Sun AND Moon because of Go" anecdotes.
 

~Cross~

Member
First time I see a company releasing a PR statement with the objective to decrease its value. Humility gone too far? :)

The only people that benefit from a stock thats hyper over valued are the ones that would stand to gain from popping the bubble. Nintendo bursting it now means less people can take advantage of it, which is ultimately good for the company and the long term shareholders.
 

DrWong

Member
I didn't say the expected a fluke.

Just that they didn't expected an incredible social phenomenon that is registering records in revenue in the mobile space.



Then I think I can say the same for you assertions, then?

And who's talking about "doomed" here? Only you crearly.
Wich one? That the app is super successful? That Nintendo get probably more than 13% of the micro-transactions pie?
 

vpance

Member
First time I see a company releasing a PR statement with the objective to decrease its value. Humility gone too far? :)

The drop might have regardless due to profit taking and being overbought.

For as dumb and irrational as the market can be, the true value is eventually made known.
 
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