Investors should take notice of the latest gaming fever – Pokemon Go. Many are asking if this is Nintedo’s comeback to the gaming market. As their first attempt to penetrate into the smartphone industry, Nintendo seemed to get it right. In just two days after its release, it has been installed on over 5% of Android smartphones in the U.S., according to SimilarWeb, a web analytics company.
Pokemon Go is being played an average of 43 minutes a day, that is more time spent than on Instagram or WhatsApp. It has also been downloaded an estimated 7.5 million times in the U.S. as of yesterday, more than dating app Tinder, while it tied with Twitter on its rate of daily active users.
Nintendo’s market capitalization rose above $30 billion, with its shares rising over 12% in Tokyo trading today following a 25% increase on Monday.
However, Mia Nagasaka, an equity analyst with Morgan Stanley MUFG Securities, claimed that in order for Nintendo’s profits to have a significant impact, the game needed to hit a minimum of 15 billion to 20 billion yen ($140 million to $196 million) turnover per month. He added that in order to give the company a substantial boost in earnings, the app needed to be consistently on top sales positions on app stores.
Are apps a new avenue for gaming? Will Nintendo pave the way for a new trend? Is this Nintendo’s gaming comeback?
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