After the release of Pokemon GO, a massive stock increase took place for Nintendo. Making its shares the highest its been in over a decade. Naturally, this was because many believed that the game was made by Nintendo itself.
However, the game is actually made by Niantic and the Pokemon Company, who Nintendo only has minor shares in for one, and is the publisher and co-owner of the other. So technically, though they released the game, promote it, and have their name on it technically, they didn’t make it.
As such, the company won’t make profit on stocks because of this. As they noted in a stock filing:
“Taking the current situation into consideration, the company is not modifying the consolidated financial forecast for now,”
Because of this, the Nintendo stock has fallen 17.7%.