Nintendo Shares Up 56% Amid Pokemon GO Craze
New mobile game Pokemon GO has become a global hit adding more than £7.5bn to Nintendo's market value since the app was released.
16:56 Thursday 14 July 2016
The Pokemon Go craze has added nearly £7.5bn to Nintendo's market value
Shares at Japanese firm Nintendo have soared by 56% since the launch of its mobile game Pokemon GO, which has become an instant hit worldwide.
On Monday, shares at the videogame giant soared 25% following the release of its smartphone app last Thursday marking the company's highest intraday gain since it was first listed on the Tokyo Exchange in 1983.
The Pokemon GO craze has added nearly $10bn (£7.5bn) to the company's market value.
In the game, players walk around real-life neighbourhoods to find virtual cartoon or Pokemon characters on their smartphone screens.
The app has already topped the download chart for the Apple and Android devices, with experts suggesting the game could be the next marketing tool for retailers.
Christophe Jammet, director of social media at DDG consultancy in New York, said. "There hasn't been a geolocation social platform that can lure so many people all at once.
"With Pokemon GO, you are seeing it as bypassing a lot of digital (marketing) channels that the brick and mortar shops have been relying on for the past few years."
The reality game has gained over 65 million users in the United States alone, within seven days of its release, and is already helping local businesses attract new customers.
The popularity of Pokemon GO, has created an opportunity for local shops attracting customers by marketing themselves as "Poke Stops," where gamers can grab Pokemon balls and increase their level of power within the app.
Whilst the game has gripped a global audience, the Association of British Insurers (ABI) has warned of the risk of people making themselves vulnerable to accidents and even crime whilst playing.
Ross Penstone-Smith, who is policy adviser at ABI said: "Playing Pokemon Go shouldn't mean letting go of your senses. It's important to remember that mobile phone users should always have their wits about them, drive carefully and watch out for hazards.
"While insurers will be there to help customers when they have accident or are victims of crime, it's best for everyone if risks are avoided in the first place. Following these simple principles should reduce those risks while still allowing gamers to play to their hearts' content."
