The Strategist

Pokemon Go hit the top in the US

07/13/2016 - 18:29

July 12, America counted 21 million active players in Pokemon Go app – this is a record for mobile games in the United States. According to Similar Web, Pokemon Go got ahead of Instagram, Snapchat, Facebook Messenger and WhatsApp on the number of time a user spends in the application (43 minutes).

Eduardo Woo via flickr
Eduardo Woo via flickr
Pokemon Go is a gaming application for Android and iOS, based on the principle of augmented reality. The player's task is to find a Pokemon with GPS-tags on a real map area.

At the moment, the game is available only in the US, Australia and New Zealand. 

Pokemon Go game for smartphones has already become very popular since it was released on Thursday in the three countries. Through this action, the Japanese Nintendo, which owns stakes in Pokemon Go’s developers Pokemon Company and Niantic, rose by more than 50% in a few days.

The US, Australia and New Zealand have elevated the game on the top of the most downloaded applications’ list. As estimated by Sensor Tower, iPhone owners have downloaded the game about 2 million times in the US only, and spent on in-app purchases on a daily basis about $ 1.6 million. On Friday, Nintendo’s stock price rose nearly 9%, on Monday - by 25%, and on Tuesday - by 13%. Thus, for these days, the company’s market cap increased by more than 50% and exceeded $ 30 billion. Now, attention of analysts is focused on possible success of the game in Japan. The owners are going to launch the app there on July 16, when the country will begin a festive three-day weekend, writes the Financial Times.

Japan is not only a birthplace of the Pokemon franchise, but also the world's largest gaming market for smartphones with sales of about $ 9 billion a year, according to Yano Research. 

It is difficult to assess how the Pokemon Go would affect Nintendo’s profits. Yet, investors are betting on the fact that the same success is predestined for to-be released smartphones games about Nintendo’s the most famous characters, including the plumber Mario. "Last Friday, stocks rebounded thanks to Pokemon Go leading [by the number of downloads] in the United States. On Monday, people realized that the game would be the number one in Japan, and this could have seriously influence the company’s profit -  FT quotes Macquarie Securities’ Senior Associate Analyst David Gibson. - In addition, people now are expecting more from Nintendo’s other five games for smartphone, which should appear in the next March.