Nintendo downplays financial impact of Pokemon Go, shares plunge

Shares of Japanese gaming giant Nintendo plunged over 17 percent at the Tokyo Stock Exchange on Monday after the company downplayed the effect of Pokemon Go on its earnings.

At the close of trading, the Kyotobased company’s stocks had lost 17.72 percent, with respect to its closing price on Friday, to stand at $218.

The drop partially offset Nintendo’s recent, extraordinary climb, when its shares and market capitalization doubled after Pokemon Go’s release on July 6.

The company said in a statement on Friday, something that has also been emphasized by analysts after Nintendo shares soared following the game’s launch, that The Pokemon Company, codeveloper and publisher of Pokemon Go, is a subsidiary of Nintendo, which owns only a 32 percent stake in the company and which is why the impact on Nintendo’s earnings will be limited.

It added all this has already been reflected in the profit forecast in April, which will not be revised for the time being.