Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY) lost a big chunk of all the gains made in the last few days as it opened with a sharp gap down and finally closed at the end of the last trading session with a major loss of 11.70%. The volume of the day at 386,000 was much higher than the daily average of 106,000, indicating the intensity of the selloff. The stock has formed a huge Head & Shoulders pattern in the last few days and now the price has reached close to the neckline. The price action here will determine the intermediate trend too.
It’s not a hidden fact that mobile gaming is on the rise and gaming companies are looking forward to shifting their focus back to mobile gaming. In this series, the world famous Nintendo Co., Ltd (ADR)(OTCMKTS:NTDOY) has announced investment in Niantic Labs and the creator of soon to be launched ‘Pokemon Go’ game.
Reports claim that Nintendo has a lot to gain from this deal. With a major equity stack, the responsibility of creating a watch that will go with the game and in-app purchases of the freemium model, it finds itself into a win-win situation.
Niantic Labs And Its Background
Those who haven’t been following gaming world closely have no idea about Niantic Labs. In fact, before Nintendo announced its interest in the company, nobody ever thought that Niantic could ever survive after being spun out from Google earlier this year. It’s not a big name in the gaming world, and best known for its extraordinary efforts in the augmented reality field.
Not long ago, it wrapped a whopping $20 million financing from three major tech and gaming companies – Google, The Pokemon and Nintendo. To those who don’t follow gaming field that much, Nintendo has a decent stack in Pokemon, so it played quite well in this deal. Reports claim that Niantic is also eligible to take an additional funding of $10 million if certain milestones are achieved within the given timeline.
With the help of this funding, Niantic Labs will focus on bringing its long-awaited game ‘Pokemon Go’ in the market soon. Apart from this, it will invest this capital in other things to create an amazing gaming platform. Experts say that Niantic will also work on evolving ‘Ingress.’ It’s one of the hardly heard about games in the world, but Niantic claims that once launched, it will change the way people play games in day-to-day life.
