Nintendo (OTC:NTDOY) has finally begun to embrace mobile technology, releasing Pokemon Go as a free app on both the Android and iOS platforms.
The game has become a massive hit. After just a few days on the market, the app is already poised to surpass Twitter in daily active users despite the latter having a large head start.
And remember, the game isn’t even available globally. Pokemon Go is only available on the U.S., Australian, and New Zealand app stores. The planned worldwide rollout is currently paused because of such overwhelming demand.
This is very good news for Nintendo shares, with its U.S.-listed shares popping some 35% on this news, even though Nintendo’s stake in the game itself is relatively small. It’s a joint venture between The Pokemon Company and Niantic Inc. Nintendo owns 32% of The Pokemon Company.
What it does represent is a new version of thinking for Nintendo. The company was formerly very resistant to move away from its traditional strategy of making games for its own consoles. Investors are betting success of this game will motivate the company to invest aggressively into other mobile offerings.
In short, it represents a wholesale change of direction.
If Nintendo is willing to invest in games outside of its own video game systems, it opens up the possibility of the company monetizing its intellectual property in other ways. Franchises like Super Mario, Zelda, or Metroid could be made into other mobile games, movies, or games for other consoles. Since fans are familiar with these games, these products will likely be big sellers.
