i3 - September/October 2016 - 18

SEPTEMBER/OCTOBER 2016

I T I S I N N O VAT I O N

PHOTOGRAPH BY STR/NURPHOTO/GETTY IMAGES

of 100 PokéCoins.
This has had both positive and negative
"While many purchasers are only
effects. There have been cases of thieves hidbuying
the entry level Pokémon curing in Pokémon hot spots to rob unsuspectThe middle tier
rency, the middle tier of 1,200 Pokéing players, while other players have walked
of 1,200 PokéCoins
Coins is the most lucrative coin bundle
into oncoming traffic or attempted to play
is
the most lucrative
for the game," Stanton says. "More than
while driving. Restaurants and other busicoin bundle for
30 percent of the revenue that Pokénesses quickly found ways to lure in players
the game. More than
mon GO generated has come from this
by offering free virtual items inside their
$5 purchase."
real-world locations.
30 percent of the
Stanton says on launch day, July 10,
When Niantic, a company that was spun
revenue that Pokémon
Pokémon GO purchases accounted for
out of Google Alphabet in August 2015,
GO generated
nearly 47 percent of the entire mobile
partnered with the Pokémon Company and
has
come from this
gaming market on the same day. "InNintendo to bring the popular videogame
$5 purchase.
app spending by millennials account
franchise to mobile devices via augmented
for the majority of Pokémon GO's
reality, it wasn't doing anything new. Niantic
in-game revenue," Stanton says. "With
had previously released Ingress, a game that
- Taylor Stanton, videogame analyst at
52 percent of buyers between the ages
employed both geocaching (treasure huntresearch firm Slice Intelligence
of 18 and 34, many of these individuals
ing in the real world with a mobile device)
were part of the prime target audience
and AR. But by adding a beloved brand that
when the Pokémon frenzy first hit the
gamers could play for free on a device that
U.S. in the mid-'90s. In addition to age,
more than two billion people already own
gender also plays a role here; nearly
(instead of limiting the audience to 60
three-quarters of paying Pokémon
million Nintendo 3DS owners), Pokémon GO
players are men."
became an overnight
sensation.
Pokémon GO catapulted
NINTENDO'S WILD RIDE
to the top of both Apple's
According to Fabien Pierre-Nicolas, vice
and Google's mobile stores,
president of MarCom at App Annie,
generating more than
Pokémon GO could easily have a run$14.04 million in its first weekend. In conrate of more than $1 billion per year with fewer server issues
trast, Niantic's last game, Ingress, has gener(which haven't been able to handle the deluge of players), a
ated $1.1 million since launching in 2014.
worldwide presence and more social and player vs. player feaAnd although one in five Americans has
tures. But not everyone is sold on the fad having a long tail.
already downloaded Pokémon GO, this is not
"Chances are we are looking at the mobile games' equivalent
the first game in the franchise to go mobile.
of a summer hit song rather than a revolution in the mobile
Pokémon Shuffle Mobile launched in August
game monarchy," says Joost van Dreunen, CEO of SuperData
2015 as a traditional mobile game and has
Research.
earned an estimated $14.03 million to date.
Nintendo discovered the hard way that its nearly $10 million
According to Slice Intelligence, at the end
investment in this game likely won't impact its bottom line
of July, the game's spending population
nearly as much as some investors had hoped.
was split 60/40 men to women.
Investors, who are always eager to follow a fad, jumped on
the Nintendo stock bandwagon as Pokémon GO stormed out
of the gate. Nintendo saw its stock price double, adding $17.6
WHO'S CATCHING THEM?
billion in market capitalization, only to see a 20 percent corWhile the game is free to play, it's
rection the following week after analysts like David Gibson of
designed with in-app purchases. In
Macquarie Securities estimated that Nintendo only has a 13
order to catch a Pokémon, players
percent "effective economic stake" in Pokémon GO.
need Poké Balls, which can be earned
That's because Nintendo is just one part of the Pokémon
over time or purchased quickly. The
Company, a joint-venture licensing partnership between the
primary currency in Pokémon GO
Kyoto-based Japanese game maker, GameFreak, which handles
is PokéCoins that are purchased
the magazines, and creatures, which oversees the physical
in bundles. Taylor Stanton, videotrading card games. Nintendo separately has an investment in
game analyst at research firm Slice
Pokémon GO, alongside Google and the Pokémon Company.
Intelligence, found that 37 percent of
Shacknews.com CEO Asif Kahn estimates Nintendo receives
early players purchased the $1 bundle

http://www.Shacknews.com

i3 - September/October 2016

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