The Big Winners
Pokémon Go enables users to “see” Pokémon characters as they use their smartphone to scan their surroundings. Players attempt to capture the little monsters, storing them in their Pokédex. There are 151 Pokémon available, and particular creatures show up in specific locations and at certain times of day. The app uses the phone’s GPS to track the user’s movements.
Through the app, gamers can purchase PokéCoins, currency used to enhance their gaming experience. Users can spend anywhere from $0.99 to $99.99 on various in-app products.
Privately held Niantic, Inc. – a spinoff of Google parent Alphabet Inc. (NASDAQ:GOOG) – developed the app with capital investments from Nintendo (OTCPK:NTDOY), The Pokémon Company, which is an affiliate of Nintendo, and Google. Nintendo also owns a stake in Niantic, which is distributing Pokémon Go.
Although the latter company’s stock experienced a big boost from the app’s popularity, Nintendo management issued a statement stating that it does not plan to alter its financial forecast in the wake of the app’s immense popularity.
Unfortunately, this announcement caused a plunge in Nintendo’s stock, erasing all prior gains. But Nintendo has an ace up its sleeve: It will soon be producing and marketing an accessory for the app, the Pokémon Go Plus.
Nintendo said that the release of this peripheral was included in its earlier financial forecast, but that was in the spring and much has changed. The wearable device, which alerts users to the presence of Pokémon without the need to scan the horizon with their smartphone, sold out quickly.
If Nintendo was to quickly ramp up production of the device – and raise the price – it just might realize some profit from the soaring popularity of Pokémon Go.
Whether or not Nintendo catches up, other companies are cashing in big on the Pokémon craze as you read these words. Here are 9 names to buy NOW…