The release of Pokemon Go on July 6 is benefiting Nintendo in multiple ways. Nintendo’s stock price has risen sharply, climbing roughly 25 percent since the company launched the game.
If you haven’t yet played Pokemon Go, it centers on a simple implementation of AR technology. Niantic Labs created the game, and it licensed the Pokemon IP from Nintendo. The game has generated an incredible amount of interest, in part because it is free. The developers monetize the game through the increasingly popular in-game purchase model.
Players walk around with their smartphones in hand and search for virtual Pokemon hidden around the world. These Pokemon can be essentially anywhere; a store, a park, a beach, or even in your own home. Users can catch, battle or train the Pokemon.
Before Pokemon Go’s release, Nintendo’s stock was trading between 13,920 and 14,490 JPY (approximately $135-$141 USD). The stock price grew steadily over the last few days, and now it has climbed to 20,260 JPY (approximately $197) at press time.
This sharp increase will likely motivate Nintendo to increase its presence in the smartphone market to continue growing the value of its stock. The game is currently only available in Australia and the United States, but Nintendo’s stock prices will likely continue to grow over the next few weeks as Nintendo launches Pokemon Go in new nations.