Nintendo's stock skyrocketed by an additional 14 percent recently, taking the company's market capitalization to 4.5 trillion yen ($42.5 billion) and trumping Sony in the process.
The reason for the fulminating surge was the launch of the mobile game Pokémon GO in the United States on July 6.
The game is now downloadable in 35 countries and is set to become a recipe for success. Investors are acknowledging the blooming potential of Pokémon GO, which caused traders to buy massive amounts of Nintendo shares.
"I've never seen the trend of such a big company's shares changing so quickly," says a senior strategist at Okasan Securities, Takashi Oba.
The shares of Nintendo closed on Tuesday at 31,770 yen ($300), at double the value they had on July 6 when the game was released on Android and iOS.
The turnover in Nintendo shares also hit a new milestone. After the previous record was set on Friday, when the company's shares turnover ranked at 476 billion yen ($4.49 billion), recent figures show a turnover of 703.6 billion yen ($6.64 billion). To put it in perspective, the number amassed to one-fourth of the full Tokyo Stock Exchange's transactions for the day.
The unexpected popularity of Pokémon GO took even Niantic, the company behind it, by surprise. The global appeal of the game gives Nintendo hope that it can draw additional revenue via other popular titles under its belt, featuring the beloved Zelda or Super Mario.
According to a report from Slice Intelligence, the game managed to make more revenue in a single day than all other mobile apps put together. What is more, the report shows that Pokémon GO is a premiere in that it attracts first-time mobile gaming spenders.
Fifty three percent of users who invested in in-app purchases in the game had made mobile game purchases during the past six months. This means that more than half of players chose to spend real money to enhance their Pokémon hunting experience.
Insiders from the trading business pointed out that while virtual and augmented reality were in the spotlight for the past months, few people expected to see Nintendo take a jab at the field.
"Suddenly Nintendo has become an AR-related stock," says a fund manager at a Japanese asset management firm who insisted on remaining anonymous. He goes on to say that the shares increased as the markets sensed that a huge amount of capital is moving through the mobile game.
The fund manager estimates that sales from the title and related merchandise will yield an extra net profit of 50 billion yen ($470 million).
Pokémon GO rolled out first in the United States, Australia and New Zealand. After its debut, the title landed in numerous countries, with an important market still missing from the lineup: Japan.
Both Nintendo and Niantic decided to keep the lid on the release date for the game in its home country. Rumors say the game is delayed in Japan due to the incapacity of the country's servers to meet the expected demand. Nevertheless, TechCrunch learned that Pokémon GO could finally launch in Japan tomorrow, along with the game's first sponsored location.
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