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Pokémon Go's big launch boosts Nintendo's stock price by 25 percent

Biggest jump in shares for the company since 1983

Since the launch of Pokémon Go on July 5, Nintendo has seen a 25 percent increase in shares, closing in at just under $200 a share in Japan on Monday, adding a total of $7.5 billion to the company's market value, according to CNBC.

The second, bigger rise in share prices comes just a couple of days after Nintendo saw a smaller surge. On Friday, the company's shares rose more than eight percent following the launch of the game in the United States, Australia and New Zealand. Analysts believe the massive spike that occurred at the end of the business day on Monday in Japan is attributable to investors anticipating a gigantic launch for the game in Asia and elsewhere. Pokémon Go is so far only available in the U.S., Australia and New Zealand..

Despite the surge Nintendo is seeing following the release of the game — which was made in collaboration with Niantic Labs — analysts are iffy over the long-term success Pokémon Go could deliver to Nintendo. One analyst told CNBC that in order for Nintendo to really reap the benefits of the free-to-play game's extraordinary success, there had to be a turnover rate of $140 to $160 million a month. The analyst added that the estimated daily turnover following Pokémon Go's first day of release was $3.9 to $4.9 million, and in order for Nintendo to see the increase it needed, the game would have to remain at the top of the app store on both iOS and Android marketplaces.

The rise in stock comes on the tail ends of Nintendo's recent financial woes. In February, Nintendo president Tatsumi Kimishima told investors not to worry about the company's future following a 36 percent drop in quarterly profit, which he and other Nintendo executives blamed on dwindling sales of Wii U and 3DS titles. Tatsumi has repeatedly told investors that through new mobile games, like Pokémon Go and the release of Nintendo's upcoming NX console, the company should see a surge in revenue. Based on recent data for Pokémon Go, it would appear that Nintendo's bet on mobile may pay off for the company, but it's still too early to tell for sure.

Of course, these numbers only account for the two regions where the game was released. Niantic has said they plan on rolling out the game to the rest of the world soon but want to ensure server problems are fixed before doing so. As it stands right now, players are still complaining that the servers are often down for small periods and they're forced to log back into the game multiple times during one session.

For a more in-depth guide on how to play Pokémon Go, be sure to check out Polygon's exhaustive look at tips, tricks and suggestions for both new and experienced trainers.


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