Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY) stock, which has been on an impressive run over the past two weeks, registered its biggest one-day drop since 2011, amidst server capacity concerns in relation to Pokemon Go. The creators of the game have already put on hold a proposed launch in Japan, as server problems continue to cause havoc.
Pokemon GO Japan Setback
Prior to the tumble, Nintendo had rallied by more than 86% in the market value adding more than $17 billion in market value in the process. Uncertainty over when Niantic, the game developer, will launch the game in Japan seems to be taking a toll on the recent momentum. Given that the run is purely based on the success of Pokemon Go, any negative news going forward should continue to spook investors.
Niantic CEO, John Hanke, insists that a launch in japan is still on the cards. However, it is still unclear when the game will be made available. According to the executive, they are being extra careful on the launch, given the level or expectations and the number of players who will take to their smartphones to play the game ones it goes online.
Pokemon Go continues to break records in the gaming industry given the hype that continues to reach new highs by the day. It is now the most downloaded game on popular app stores having already surpassed Twitter in terms of active users. The game is also on course to clock the $4 billion mark on annual revenue set by Candy Crush.
Riding on Pokemon Go Wave
The number of companies benefiting from the craze continues to grow by the day, as the developer continues to explore ways to monetize the game. McDonald’s Corporation (NYSE:MCD) is one of the companies that is riding high on the hype after it emerged that its 3,000 outlets in Japan, will act as battlegrounds for collecting Pokemons.
Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY) shares could trade higher in the coming days as the game debuts in more countries after initial releases in North America and Europe. However, negative reception, especially in Japan, could have a catastrophic impact on the stock’s sentiments on the street.