Summer fad? Pokémon Go unlikely to fade too fast
In one week, Pokémon Go has sparked a national gaming frenzy. And there’s no sign yet gamers are getting tired — demand that’s likely to pad the pockets of its creators and copycat game publishers.
The mobile game for iPhones and Android devices remains No. 1 in Apple and Google’s app stores. Research firm SurveyMonkey calls it the biggest mobile title ever in the U.S. based on its peak daily active users. It has been downloaded more than 15 million times, research firm SensorTower estimates.
With several key updates in the works, combined with devotion to the long-running TV and game franchise, Pokémon Go could move beyond a summer fad to something bigger.
“All publishers are taking note of the success the game is having,” Piper Jaffray analyst Michael Olson said.
The lingering question: Will its run eventually peter out, sapping the fortunes of its publisher in the same way Rovio’s Angry Birds and Zynga’s FarmVille did?
Even Candy Crush Saga, which like FarmVille rode the Facebook-games craze to explosive success, wasn’t enough to keep propelling the fortunes of owner King Digital for more than a few years. If Pokémon Go follows mobile gaming’s familiar boom-bust cycle, it’s clearly in the boom part now.
The game has pushed so many people into the streets that police departments are issuing safety advisories and Niantic says it’s struggling to keep its servers online. Shares of Nintendo, part owner of creator Niantic Labs, added more than $12 billion in market cap.
Developers will give AR a fresh look following the success of Pokémon Go, Olson said, noting some games could leverage the technology into new experiences. For example, he cites Activision’s Skylanders, a toysto-life series where players purchase physical action figures and use a special portal to bring them to life in a video game. A potential mobile game could include players seeking out Skylanders using similar AR tools.
“It definitely will prove to reshape the pipeline of some developers, trending more toward AR,” Olson said.
Achieving longevity in the mobile games market is challenging. Most games surge to the top of app charts before quickly fading. There have been some success stories, including Candy Crush Saga, the 2012 puzzle game that jumped in popularity and eventually led to a 2014 initial public offering from King Digital. The company was acquired last year by Activision for $5.9 billion.
There’s also Clash of Clans, a multiplayer strategy game from Supercell that remains among the top-grossing apps available. Last month, Chinese Internet giant Tencent announced it was spending $8.6 billion for a majority stake in Supercell.
“All publishers are taking note of the success the game is having.” Piper Jaffray analyst Michael Olson