The 5 companies making big money from Pokémon Go

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Nintendo's value has soared by billions of dollars thanks to Pokémon Go.

But have investors got ahead of themselves? How much is the game actually making for Nintendo?

Superdata Research estimates Pokémon Go is generating around US$1.6 million (NZ$2.2mil) a day in the United States via Apple's iOS platform and another US$700,000 (NZ$962,000) from Android.

That is US$2.3 million (NZ$3.1 million) per day from the United States alone.

The game is free, but users pay for "add-ons" they can download to help them find the Pokémon characters in the game.

Nintendo is looking at deals for sponsorship of some locations within the game. It is also looking at releasing hand held controllers for smartphones and tablets.

App analytics firm App Annie says Pokémon Go could generate US$1 billion a year in global revenue, once it is released in other markets like Japan.

But wait a minute. Nintendo does not receive all of the revenue. Not even close.

Macquarie Research analyst David Gibson estimates 30 percent is going to Niantic, 30 percent to The Pokémon Company, 30 percent to Apple or Google and ten percent to Nintendo.

Presumably Nintendo's share of the revenue will ultimately be more than ten percent because of its investment in both Niantic and The Pokémon Company.

Investors sent the Nintendo share price soaring because they also think this is a sign that Nintendo is embracing mobile gaming. It has 4 - 6 other games planned for the coming year.

But it is hard to be sure how much Pokémon Go will be worth to Nintendo.

Was the almost fifty percent rise in Nintendo's market valuation justified?

Some analysts are doubtful. They say all the good news is baked into the share price.

A big question is how long the game can remain one of the world's most popular downloads.

Another question is whether Nintendo can come up with another blockbuster. There are plenty of companies in the gaming sector who have faced challenges repeating the success of a hit release. Zynga could not repeat its FarmVille hit and King Digital struggled to follow up on the success of Candy Crush.

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