We have made it very clear that we here at Wampaslayer are super into, and getting a lot of exercise from, Pokemon go. Jason has done a great article about the current state of the game and what he’s looking for in the future of the game and Kris has covered getting outside and exploring with the game. We are not the only ones, according to a recent report the game is currently showing over 20 million daily active users which beats both candy crush, the previous record holder for games, and Twitter. As far as DAUs are concerned, the app has the potential to beat out both Snapchat and Google Maps.
One would think this is a huge financial victory for Nintendo, and it is as the company is projected to boost profits by 15%, but there is another company benefiting far more. The game operates on the freemium model that we are already aware of. The game is free on the app store and can be played entirely without paying anything but the app offers several premium services and items that can be purchased through the app store. With the high DAU numbers the game is pulling in, the game has climbed to number 1 on the iOS store making it a huge money maker for Apple which, as it turns out, it making much more than Nintendo.
The reason for this is the structure of the deal between the app developer, the pokemon company, and nintendo when the game was created. Niantic, a former Google company, is the developer of the game but The Pokemon Company and Nintendo own the IP so, in a $30 million joint venture, the companies worked to develop the characters and the IP for use in the game leaving Nintendo in a 10% ownership in the application. Macquarie Capital Securities analyst David Gibson broke down the earnings per 100 units sold on the app store as 30% Apple, 30% Niantic, 30%The Pokemon Company, and 10% Nintendo.
All of this information is from the first week of release and early reports show the game raking in over $14 million since the release on July 6th so as the app continues to improve the launch problems and server issues it can only get more popular.