Deutsche Bank Says Nintendo’s Pokémon Go-Inspired Surge Has Run Its Course

Nintendo’s market has been increasing even before “Pokemon Go” has hit the app stores.

Nintendo breaks a Tokyo stock market record, thanks to the release of successful mobile game Pokemon GO, the announcement of the NES Classic, and other factors. Don’t believe me? Look at the chart above, and you’ll see the insane spike in Nintendo’s market cap since Pokemon GO launched earlier this month.

According to Mashable, the shares of Nintendo have rose nearly immediately after the Pokemon Go augmented reality game has been released. “The market is now valuing Nintendo … on a par with global leaders such as Electronic Arts (EA) and Activision Blizzard (ATVI) that respectively have 5% global video game market share vs. Nintendo’s current 2%”. It’s due to the key characteristic of the game that lead to a huge success. The Pokemon Go craze helped Nintendo to become the most traded stock in Japan’s market history.

“Pokemon Go” is a joint venture of the Pokemon Company, which is 40%-owned by Nintendo, and Niantic, a spinout from Alphabet (GOOGL).

According to financial markets, Nintendo Co. The increased stock price of Nintendo reflects the success of the “Pokemon Go”, according to David Corbin of Tech in Asia. The hype lasted for a few years until their value dropped after 2012. The top-rated company in the Computer Software-Gaming sector is NetEase (NTES), with an EPS rating of 99.

Aside from the rumors of a new controller, the NX reportedly won’t need discs for games, suggesting that it could either require downloading titles or maybe use old game cartridges instead.

Shares of Nintendo (OTCMKTS:NTDOY) opened at 33.382 on Monday. Would the company be able to keep Pokemon Go players interested with upgrades to the game in the future?

The good streak provides some breathing room for Nintendo, a company that found itself in a tough spot recently, hemmed in on one side by a game-console market that analysts say is slipping from its grasp, and on the other by a fast-growing smartphone gaming universe the company chose to ignore as a matter of policy.