Pokemon GO has become a viral hit with smartphone users where the application is available.
Renowned videogame company Nintendo had increased its value by £15 billion in just a week after the release of the application.
The mobile game is an augmented-reality game where smartphones use cameras and locate certain Pokemon in different areas of any city or country. Different environments mean different Pokemon characters related to the area. For example, a power plant may have a Voltorb — a Pokemon that produces electricity.
Pokemon has been a successful franchise since it first came out in Nintendo’s Gameboy and consoles.
According to Oasis Management’s Chief Investment Officer and leading Asian Hedge Fund Manager Seth Fischer, Nintendo should see the potential of the mobile market.
“I hope they will now understand the power of smartphones,” Fischer told Reuters. “And as a result, I hope this means there is a whole change in strategy.”
“My next focus with Nintendo is for them to focus on monetizing the rest of their 4,000 patents for mobile gaming, multi-player gaming, et cetera. I think they could be making 30 to 60 billion yen ($290 million to $570 million) annually from licensing.”
However, Nintendo does not see itself as staying in the mobile market for too long.
Serkan Toto, founder of Tokyo-based game industry consultancy Kantan Games, said Nintendo still saw itself as a console maker.
“When you sell $400 dedicated devices and you sell the gamer boxed software for $60 a piece – for them this is the gold standard,” he said. “For them, mobile is the junk food: enjoy while you wait for the bus. It’s not something that Nintendo sees for itself.”