Oh the joys of summer and relearning the teenage life through the eyes of my grand daughter. An introduction to the world of Rattatas and Pinsirs as a player for Team Mystic. Unless you’ve had your head in the sand, these are characters in the latest craze (fad) to rule the planet. In case you’ve missed it, the newest ‘hot thing’ is none other than Pokémon Go.
In their review, TechCrunch said:
… the game, on its own, is phenomenally well designed, despite myriad bugs and endless server outages. If you look at all aspects of the game loop — engagement, retention, virality and monetization — it nails pretty much everything on the head. Niantic managed to hit a very rare, exceptional home run on every textbook point of the game’s development.
My guess is this will ultimately flame and burn, but how to profit from it? Let’s track the possibilities.
- The Pokémon franchise is owned by three companies, two of which are private (Game Freak and Creatures). The third is Nintendo (NTDOY (adr)) which may now be overpriced.
- The developer is Niantic which was spun out of Alphabet (GOOG) and is rumored to be an IPO candidate. (modified 21 Jul to provide better clarity in response to Doug’s comment)
- In app purchases (Android Pay (GOOG) and Apple Store (AAPL))
- Increased data plans (T, VZ, et.al.)
- Data Centers (GOOG) (added 16 Jul)
There are always intricacies to ponder in the investing world. Just like the real world … gotta go … I need to defend my gym from Team Instinct.
Do you play?
- 15 Jul – Niantic announced rollout t0 200 jurisdictions “soon”, T-Mobile (TMUS) announced free Pokémon Go data for one year, Nintendo owns about 10% of Creatures
- 16 Jul – server issues bring the app down, Datacenter Dynamics believes the game is hosted on Google Cloud Platform
- 17 Jul – saw two cars idling with their A/C on defending a gym – add gas stations/refineries to the list, with injuries on the rise a short on UNH/HUM etc. may be in order in addition to a long on medical REITs, finally – to be a little morbid – the first confirmed fatality may have STON as a beneficiary.
- 18 Jul – Gamestop (GME) announced on CNBC that sales were up 100% in the 462 stores that are Pokéstops or Gyms, Zagg, Inc. (ZAGG) provides portable battery chargers.
- 19 Jul – Insider Monkey reports the possibility of a hardware product development, McDonald’s (MCD) becomes a partner in Japan.
- 20 Jul – Street Signs (CNBC) reports a delay in the Japan release due to concerns with server load resulting in up to a 15% price decline in NTDOY stock overnight. But assuming the app has staying power IBD calculates it could be worth as much as $3B to Apple (AAPL), Key Bank (KEY) provides working capital (along with JPM, WFC and ZION) to Zagg.
- 21 Jul – Project Fixup with their new Pokémon Go dating service, the first Pokémon Go death has been reported with teen being ambushed in Guatemala.
- 22 Jul – Engadget reports Japan is launched and possible SoftBank (SFTBF) and Jamba Juice (JMBA) future sponsorship.