'Pokemon GO' Update: What Game's Success Means For Nintendo's Struggling Business [VIDEO]
The undeniable success of Pokémon GO has no doubt raised the value of its parent company, Nintendo. With the game being downloaded on 5 percent of all Android devices in the United States, and with millions of players perennially crashing the game's servers due to sheer numbers, Nintendo's fortunes seemed to have reached a turning point.
Since the game officially launched last week, Nintendo's shares have experienced a massive boost. So massive, in fact, that the company's stocks rose almost 25 percent. After the release of Pokémon GO, Nintendo's market value has experienced an increase of about $7.5 billion. Considering that the massive amount was practically earned overnight, it is undeniable that there is a lesson Nintendo needs to learn from the success of Pokémon GO.
Nintendo has always been very protective about its IPs. Since the company's glory days, the firm has been considered very formidable due to its strong lineup of exclusive IPs and an equally strong lineup of powerful, capable hardware. For the longest time, this strategy has worked wonders for Nintendo. However, with the advent of the smartphone age, this very same exclusivity has proven to be an Achilles Heel for the Japanese gaming giant.
When the gaming firm launched the Wii U, the company advertised it to be as true-born Nintendo console, with exclusive titles and very little third-party support. While the Wii U had iconic games such as Super Mario Bros. and Animal Crossing, its exclusive nature proved to be a tough sell to consumers. Now, the Wii U stands at the bottom of the console sales rankings, with the PlayStation 4 and the Xbox One selling far more than Nintendo's machine.
If anything, Pokémon GO proves that Nintendo must start opening its mind to options that lie far beyond its hardware. The millions of gamers who immediately jumped into the augmented reality game is proof of that. Thus, with the next generation of console gaming coming soon, it would be a good idea for Nintendo to start looking for lucrative options outside its comfort zone.
