The Japanese company has had its fair share of success as a video gaming console company. Having started out as an unparalleled leader, the company had to cede share subsequently to rivals Microsoft Corporation MSFT and Sony Corp (ADR) SNE, which brought to the market more innovative and compelling competing products.
This forced Nintendo to look at other rewarding opportunities. Enter "Pokémon GO."
Innovations For An Evolving Audience
This free mobile game initially released in select countries in July was the first big hit game to use augmented reality.
The game was developed by Niantic, a splinter unit of Alphabet Inc GOOG GOOGL's Google. Revenues come from in-app purchases. Players make use of the phone's GPS to locate, capture, battle and train virtual creatures called Pokémon, which appear on the screen as though they were in the player's real world.
According to TheStreet contributor Kat McKerrow, the game became the world's most downloaded app and had more than 300 million users in about two weeks.
Where Mario Will Succeed
What makes "Super Mario Run" a standout is that unlike Pokémon Go, for which Nintendo receives merely licensing fees and royalties, it stands to gain the full revenue stream from "Super Mario Run." The game is priced at $9.99 for a full-access download. McKerrow said nostalgia may play a role in the game's success as Mario fans may not hesitate to pay for a chance to play with all too familiar characters they've grown up with.
Having rallied strongly for much of this year, the company's shares could see additional upside, according to McKerrow. This could also lead to fresh investment into developing subsequent games.
At last check, ADRs of Nintendo were down 8.75 percent at $26.78.
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