Nintendo shares sink 18pc as bosses reveal it won’t make massive profits from Pokemon Go

NINTENDO saw £5bn wiped from its value as shares sunk 18pc following its admission that the Pokemon Go game would have a limited impact on its profits.

The mobile phone game has been a worldwide success since it was launched on July 6, causing Nintendo’s value to double.

Pokemon Go, which is based on the cartoon series made famous in the 1990s, was developed by US firm Niantic and Nintendo.

Investors had assumed the partnership would inevitably mean a huge boost to Nintendo’s profits.

But the firm has admitted that it has only a 13pc stake and that revenues from licensing and fees would be limited.

Its shares dropped 17.7pc, the maximum allowed in the Nikkei index – but despite this they are still 60pc higher than before the game’s release.

Pokemon Go involves players using the video screen on their mobile phone to spot and capture Pokemon cartoon creatures on the street. It has not only proved wildly successful but has been highly controversial, with users warned about playing the game while driving or at school. David Gibson, a senior analyst at Macquarie Securities Group, said he thought markets had over-reacted to Nintendo’s admission, adding: ‘I believe that Pokemon Go will be material in the company’s earnings, given the current trends for the game.’