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Nintendo's shares plunge as Pokémon Go has limited effect on its earnings

By Cookie Monster - on 26 Jul 2016, 12:00am

Nintendo's shares plunge as Pokémon Go has limited effect on its earnings

 

Pokémon Go may be the most popular gaming app in the world right now, but its success may be overrated and this has caused Nintendo's shares to plunge as much as 18% yesterday.

According to Reuters, Nintendo's shares had the steepest drop in 26 years after the company announced that Pokémon Go will have "limited" financial impact. The market reaction wiped out US$6.7 billion in market value for Nintendo yesterday.

Just two weeks ago, the overwhelming success of Pokémon Go helped Nintendo gain US$9 billion in market value. It was also estimated to help Apple generate US$3 billion in revenue over a two-year period. It currently holds the record for the most number of downloads in the first week of launch on Apple's App Store.

Source: Reuters 

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