--- description: Nintendo's share price on the Tokyo Stock Exchange dropped after company clarifies financial stake in Pokémon Go. title: Nintendo Stock Slumps As Investors Realize It Doesn't Make Pokémon Go image: https://static.time.com/v3/assets/bltea6093859af6183b/blt2869004186df62ee/69889f13cf40a82fecc44286/pokemongo-nintendo-stocks.jpg?branch=production&width=3840&quality=75&auto=webp&crop=16:9 ---  * [Business](/section/business/) ## Business Update your preferences in [Account Settings](/account/preferences/) Close * [Tech](/tag/time-section-tech/) ## Tech Update your preferences in [Account Settings](/account/preferences/) Close # Nintendo Stock Slumps As Investors Realize It Doesn't Make _Pokémon Go_ by [Mahita Gajanan](/author/mahita-gajanan/) ## Mahita Gajanan Update your preferences in [Account Settings](/account/preferences/) Close Gajanan is an editor at TIME. Jul 25, 2016 12:39 PM CUT  People play Pokemon Go at a park in Tokyo on July 25, 2016. People play Pokemon Go at a park in Tokyo on July 25, 2016.Kimimasa Mayama—EPA by [Mahita Gajanan](/author/mahita-gajanan/) ## Mahita Gajanan Update your preferences in [Account Settings](/account/preferences/) Close Gajanan is an editor at TIME. Jul 25, 2016 12:39 PM CUT Nintendo’s share price on the Tokyo Stock Exchange dropped 17% Monday after the company revealed new details on its financial stake in the gaming phenomenon [_Pokémon Go_](http://time.com/4415034/pokemon-go-hackers-poodlecorp/ "undefined"). [The Guardian](https://www.theguardian.com/technology/2016/jul/25/pokemon-go-nintendo-shares-tokyo-stock-exchange-niantic "undefined") reports Nintendo caused the dip in shares itself by sharing a statement after the close of trading Friday, when _Pokémon Go_ was released in Japan. According to the statement, although Nintendo and Pokémon have a long-running affiliation, Nintendo did not create and does not own _Pokémon Go_. The apparent affiliation between the companies drove investors to [more than double](http://www.bloomberg.com/news/articles/2016-07-17/pokemon-frenzy-rewrites-record-books-for-tokyo-trading-chart "undefined") Nintendo’s share prices in July. _Pokémon Go_ is made and distributed by Niantic, Inc., an independent company spun off from Google. Nintendo holds stakes in Niantic and owns 32% of the voting power in the Pokémon Company, which will receive a licensing fee as well as “compensation for collaboration in the development and operations of the application,” according to the statement. But the company won’t receive a direct income from _Pokémon Go_, which is [forecast to make $3 billion](http://fortune.com/2016/07/20/apple-pokemon-go/ "undefined") within the next two years, by one estimate. Nintendo’s market capitalization approximately doubled in recent days amid hype over the new Pokémon game. However, it had been made clear before Monday’s statement that Niantic, not Nintendo, was the primary force behind the title. ```json [{"@context":"https://schema.org","@type":"NewsArticle","@id":"https://time.com/4421450/pokemon-go-nintendo-shares-tokyo/","mainEntityOfPage":{"@type":"WebPage","@id":"https://time.com/4421450/pokemon-go-nintendo-shares-tokyo/"},"headline":"Nintendo Stock Slumps As Investors Realize It Doesn't Make Pokémon Go","datePublished":"2016-07-25T12:39:08.000Z","dateModified":"2026-04-13T08:50:17.946Z","description":"The company revealed more details about its financial stake in the game","url":"https://time.com/4421450/pokemon-go-nintendo-shares-tokyo/","keywords":["Tech","Video Games"],"thumbnailUrl":"https://static.time.com/v3/assets/bltea6093859af6183b/blt2869004186df62ee/69889f13cf40a82fecc44286/pokemongo-nintendo-stocks.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","author":[{"@type":"Person","name":"Mahita Gajanan","jobTitle":"Gajanan is an editor at TIME.","url":"https://time.com/author/mahita-gajanan/"}],"articleSection":"Business","image":[{"@type":"ImageObject","url":"https://static.time.com/v3/assets/bltea6093859af6183b/blt2869004186df62ee/69889f13cf40a82fecc44286/pokemongo-nintendo-stocks.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","width":1200,"height":675,"headline":"People crowd square to play Pokemon Go","caption":"People play Pokemon Go at a park in Tokyo on July 25, 2016.","creditText":"Kimimasa Mayama—EPA","representativeOfPage":true}],"publisher":{"@type":"Organization","name":"Time","url":"https://time.com/","logo":{"@type":"ImageObject","url":"https://time.com/images/logo.png","width":528,"height":156},"foundingDate":"March 3, 1923","sameAs":["https://www.facebook.com/time","https://www.instagram.com/time/?hl=en","https://twitter.com/time","https://www.pinterest.com/timemagazine"]}},{"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"item":{"@id":"/section/business/","name":"Business"}},{"@type":"ListItem","position":2,"item":{"@id":"/tag/time-section-tech/","name":"Tech"}},{"@type":"ListItem","position":3,"item":{"@id":"https://time.com/4421450/pokemon-go-nintendo-shares-tokyo/","name":"Nintendo Stock Slumps As Investors Realize It Doesn't Make Pokémon Go"}}]}] ```