Following the release of the popular mobile game, Pokemon GO, Nintendo’s stock originally was on the receiving end of great success. However, following a press release on Friday, Nintendo admitted that they were a main investor in the game but were not realizing the main margin of the Pokemon GO profits. Up until that point, Nintendo’s stock had escalated immensely. To put things in perspective, the stock had reached ¥31, 770 which was incredible given that their stock had not performed well in past years.
However, since the announcement and due to the misunderstanding on the behalf of the investors, the stock has now plummeted 18%. That roughly shakes out to a loss of 708 billion yen¹. So, suffice to say that this realization came at a great cost to the company’s profit margin.
Hopefully next time, investors will do a bit more research into their investments prior to jumping the financial gun (we doubt it, they are going to do it anyway).