
While Nintendo shares have soared since the launch, investors might have been getting ahead of themselves as usual. First of all, the game is free although in-app purchases might be necessary as trainers start amassing large quantities of Pokemon. As far as in-app purchases made on iOS are concerned, Nintendo's cut is one-third what Apple gets. The latter takes 30% of this revenue. Game developer Niantic takes another 30% as does The Pokemon Company. Nintendo takes 10%. It should be pointed out that Nintendo's stake might be a little higher as it does own a stake in The Pokemon Company.
The challenge for Niantic and crew will be to keep the game popular. The third most popular smartphone game in U.S. history is "Draw Something," which was so red hot back in 2012 that developer OMGPOP was sold for $180 million to Zynga. Draw Something quickly lost its appeal and Zynga ended up taking a bath on the acquisition. This is an industry where fortunes change like the wind. Will Pokemon be different? Only an Alakazam knows at this point.
source: SurveyMonkey via MacRumors
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