After driving people nuts in the US, Australia or New Zealand, Pokemon Go the mobile augmented reality game is currently converting the world. Nintendo as well as Apple, Google among others see it as a jackpot.
Pokemon Go, the already famous augmented reality mobile game, already present in over 40 countries, is actually a global tidal wave! According to TrendForce, it should generate an income of $ 800 million in 2017 and become a true boost for the augmented reality software market estimated at $ 30 billion by 2020.
So who will benefit from this windfall?
Logically enough, Nintendo appears as the first beneficiary. Less than two weeks after its launch, the game already is already used by over 21 million users only in the US, more than doubled the stock exchange price of the Nintendo company.
The value of the company which created the famous Mario character has just exceeded Sony’s company share level, for the first time. Yet, the game does not even strictly speaking belong to Nintendo. It is actually Niantic, a spin-off of Sony Alphabet which also holds a stake who actually owns it. The manufacturer of the popular Wii console is also the owner of the Pokemon franchise and thus gets the benefits of Pokémon, indirectly on two levels.
Pokemon Go is a free app which people can download from the two mobile platforms Apple AppStore and Google Play Store. Monetization is however related to the sale of specific tokens called “Pokecoins” which facilitate the prosecution of virtual characters in the real world. Indeed, 100 chips cost around $ 1. Partnerships, through commercial interest sites (shops, restaurants, hotels …) to which users are forced to go through the application are a great opportunity for additional income. And not surprisingly, McDonald’s is the first sponsor to join Pokemon Go in Japan. According to JP Morgan, this business model could help generate a monthly income of about $ 300 million that will boost annual profit of Nintendo of almost $ 250 million.
But the Japanese firm is more ambitious and does intend to go further. The group plans to get involved directly in the game by selling Pokemon Go Plus, a $ 35 dedicated bracelet or box (wearable) the user could carry around. This would allow the Pokemon Go players to indulge in their favorite activity, without having to take their smartphone from their pocket. JP Morgan believes Nintendo could sell 50 million units of wearables per year, which would allow an additional income of approximately $ 1.8 billion boosting its turnover by 35%.
Overall, the annual profit generated by Pokemon Go could be up to $ 500 million, almost 30 times the one recorded in the last fiscal year that ended in March 2016. This explains the surge in share price Nintendo stock exchange.
Other stakeholders could also benefit from this windfall: according to some analyst quoted by the Japanese newspaper The Japan Times, the game could generate $ 3 billion in profits for Apple in less than two years, as players pass through its platform AppStore to buy PokeCoins. The same applies to Google Play Store via its sales platform.
Lenovo also hopes Pokemon Go will boost sales of its Phab2 Pro, the market first smartphone to incorporate the augmented reality technology. The value of its action on the stock exchange in Hong Kong is actually more than thrilled.
Don’t forget to protect your smartphone when you play Pokemon Go or other online games. Indeed in the past from the Sony hacking, for example, we know that players are prime targets for cybercriminals.
The safest solution to protect yourself and your smartphone, when you are online is to use a VPN service. This ensures that no malicious software is listening and using the data you send, even during unprotected internet connection. You will thus avoid your banking passwords, your email accounts or your social networking profiles being hacked and used without your knowledge.
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