It’s the buzz of the financial world, Nintendo market value has passed Japanese giant Sony, all thanks to the viral mobile app Pokemon GO.
Fueled by the global fever for the Pokemon GO app it backed, Nintendo has pushed its market value to the next level, passing Japanese electronics giant Sony Corp. and extending a run that started after the Pokemon GO become a global phenomenon.
The once small Japanese company is now worth almost $40 billion. It’s now much bigger than Sony, which said to be at $38.38 billion.
Nintendo’s value has increased exponentially, all thanks to the app called Pokemon GO, a free-to-play location-based augmented reality, a mobile game developed in collaboration with Niantic Labs, a Google/Alphabet spinoff company.
And it’s not just about the market value, Nintendo also breaks the major stock record for the most shares ever traded daily in Japan on Friday. Nintendo now had the biggest daily turnover of any company on the Tokyo stock market.
According to Bloomberg, Nintendo traded $4.5 billion in a single day, breaking the record previously held by energy company Tokyo Electric.
The massively popular mobile app has already added $7.5 billion to Nintendo’s market value since its official launch. But despite its huge success in the market, Nintendo has also experienced few problems with the game. The game’s international launch has been halted due to server issues caused by unexpected high demand.
The server issues have resulted in negative press, with some media claiming that the game’s initial iteration is a buggy mess on all levels. In addition, there’s also some few security concerns involving user’s Google accounts.
Nintendo didn’t directly develop or publish the Pokemon Go mobile game. Nintendo holds only a significant stake in the series’ licensor, which is The Pokemon Company. Because of the huge popularity of the app in the market, Nintendo has become the second most popular brand on social media at the time, according to the latest data from BrandWatch.
Pokemon GO was developed and published by Niantic Labs, a former Google’s augmented reality division. Both Google and Nintendo invested an estimated $30 million in Niantic Labs while it was still developing the widely popular mobile app.
The game has been installed on more than 5 percent of Android devices in the US market, according to the analytics firm SimilarWeb. The game has also become the most popular mobile app in terms of active users at any one time in the US, beating another gaming hit Candy Crush Saga.
Picture Courtesy: Eduardo Woo/Flickr Creative Commons