We warned about this when we covered Nintendo’s stock market spike following the Pokemon GO craze. Pokemon GO’s stock market craze ends. Nintendo doesn’t own nor did they develop the mobile phenomenon – Niantic Labs did. Well, early this Monday investors caught on to this little factoid and Nintendo’s shares fell 17.7 percent as a result.
“Taking the current situation into consideration, the company is not modifying the consolidated financial forecast for now,” said Nintendo in a stock filing.
The fact that Nintendo doesn’t own the Pokemon GO property not only means the success of the mobile game won’t necessarily translate into profit for the company, but also it proves Nintendo doesn’t necessarily know what it takes to make successful products in the gaming industry.