What goes up must come down, and it's happening to Nintendo stock. The hoopla over Pokémon Go has subsided a bit and now investors are paying attention to the fact (and admission by Nintendo) that Nintendo doesn't get all the profits from the app, and may only end up with 10 to 13 percent of those profits, meaning Apple and Google are pocketing more than the video game firm will.
Related: 3 Reasons Pokémon Go May Save Us All
As I wrote earlier, Apple and Google earn 30 percent of each in-app purchase. Niantic, the app developer, earns the rest, though it has to pay licensing fees to both Nintendo and the holding company that owns the rights to Pokémon's characters. It's unclear how much those fees are, but Nintendo is trying to adjust expectations. When it comes to dollars, Nintendo's not gonna "catch 'em all."
We always knew this, but it took a press release from Nintendo to admit the reality of its profit sharing enterprise. Still, Nintendo is currently valued at billions of dollars more than it was before the app took the world by storm. And Nintendo will certainly capitalize on the renewed interest in Pokémon with a new movie, an accessory for the game, and probably more apps. And this time, it may want to release those apps itself!
