Nintendo Shares Plummet as Company Expects No Earnings Boost from Pokemon Go

nintendo-logoNintendo shares are plunging this morning, after the company announced that it would not adjust earnings estimates to account for the impact of its blockbuster Pokemon Go game.

The Kyoto, Japan-based video game giant surprisingly announced that “financial impact from Pokemon Go will be limited” in the current quarter. That’s quite a contrast from what many analysts had expected.

Nintendo is the publisher (but not the developer) of Pokemon Go, and owns a 1/3 ownership stake in the Pokemon Company. At some point, the company stands to benefit financially from the game, but apparently not now.

Pokemon Go is arguably the most popular game in the world right now, with hundreds of millions of users. The app, which runs on smartphones and tablets, presents users with an augmented reality experience. Users often travel great distances to track down rare Pokemon, which are the game’s namesake “pocket monsters” that players are encouraged to capture.

Nintendo shares had soared since the game’s release in early July, but those gains now appear to be dissipating almost as quickly:

NTDOY-2016-07-22

Shares of Nintendo Co., Ltd (OTCMKTS:NTDOY) plunged another $1.97 (-6.08%) in premarket trading Friday to $30.45.

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