CNBC is reporting that Nintendo’s share prices have seen a massive 25 percent spike since the worldwide rollout of Pokémon Go began last week. As of this morning, Nintendo’s share price is currently sitting somewhere in the neighbourhood of US$200 a share in Japan, adding an estimated US7.5 billion to the venerable game manufacturer’s market value.
This is total of two share price surges, with shares rising 8 percent on Friday before the bigger spike today. Investors believe this second, much larger spike in Japan is due to investors anticipating a gargantuan launch in Asian and European territories this week. The game is currently only officially available in Australia, New Zealand and the United States.
Though the surge is good news for Nintendo, analysts are cautioning against Pokémon Go long-term expectations, with one analyst claiming Nintendo would need to be turning over around US140-160 million per month in micro-transactions in order to truly see any benefit from the game’s success.
The stock rise follows what has been a financially grim period for Nintendo, with president Tatsumi Kimishima telling investors that a 36 percent drop in the company’s quarterly profits wasn’t anything to worry about. Kimishima has maintained throughout that the company’s slate of mobile titles, including Pokémon Go and their upcoming, mysterious NX console, would translate to a revenue surge. At present, it seems like Kimishima’s faith was well placed, though it’s still early days.