Investors are going bonkers over a new smartphone game launched last week by Japanese gaming firm Nintendo Co. On hopes that strong sales of the new game will boost earnings, shares of the maker of Super Mario and Zelda games jumped by almost a quarter on Monday.
Pokémon GO, which was launched July 6, helped Nintendo’s shares soar more than 20 percent on Monday in Japan — adding more than $7 billion in market value — after the stock jumped 9 percent on Friday. Following its launch, Pokémon GO rocketed to the top of free app rankings in Apple’s U.S. iTunes store.
“This is some Nintendo magic,” Serkan Toto, founder of consultant Kantan Games Inc., which specializes in Japanese mobile games, told Bloomberg. “It’s the first time a mobile game has created a buzz like this at least in the U.S. This is basically what Nintendo is all about.”
Monday’s jump was the biggest intraday performance of Nintendo’s shares since 1983 when they listed in Tokyo, Bloomberg reported. Although the company is yet to fully embrace the world of mobile gaming, investors hope that its much-anticipated shift into this segment will eventually pay off… see more