Nintendo Delays Pokemon GO Plus Accessory as it Swings to Q3 Loss

nintendo-logoVideogame giant Nintendo Co. on Wednesday posted weaker than expected quarterly earnings and noted that its much-anticipated Pokemon Go accessory would be delayed until September.

Pokemon Go Hardware Delayed

The Kyoto, Japan-based company said its Pokemon GO Plus accessory wouldn’t be released this month, as originally planned. Instead, the company will launch the device in September, citing software syncing issues.

Pokemon GO Plus will be a companion to the popular Pokemon GO smartphone game that would alert players to nearby Pokemon. Currently, players need to have their smartphone on and the app open to find Pokemon, which quickly drains the battery and requires constant attention.

Pokemon GO is estimated to have been installed on 75 million iPhone and Android devices since its launch just a couple of weeks ago, but Nintendo’s potential benefits from the game have been called into question recently. Nintendo owns a 1/3 stake in the Pokemon Company, which in turn owns the licensing rights for the name. Nintendo did not develop the game and reportedly does not directly make money from in-app purchases.

Light Earnings

Nintendo swung to a loss of 5.1 billion yen ($49 million) in the second quarter, worse than the consensus estimate for a 4 billion yen loss. Last year, the company saw a profit of 1.15 billion yen in the same period.

Looking ahead, the company forecast operating profit gains of 37% for the full fiscal year, which ends in March 2017, to 45 billion yen. The company did not mention any specifics regarding the financial impact Pokemon GO may or may not have. As such, investors should assume the impact will not be significant, suggesting the stock may have even further to fall in the short term:


Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY) shares fell $0.96 (-3.31%) to $28.04 in premarket trading Wednesday. The stock has still gained more than 59% year-to-date, but has fallen 24% in the past six trading days.

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