Who All Are Making Money from Pokémon Go Success?



The success of Pokémon Go shows an immense potential of augmented reality in different markets be it is gaming or other technology. It’s been just one and a half month and the game has more than 100 million active users. The Pokémon Go has also beaten The Candy Crush Saga in term of numbers of users in just a week. Google Play store suggests the no. of installs between 100M – 500M.

A partnership between Niantic Inc., Nintendo, and The Pokémon Company helped the game see light of the day. However, the main credit of its development goes to Niantic Inc, a spun off internal startup of Google

Just in a month, Pokémon Go has more than 100 million users and has grossed revenue of more than $250 million, even though the game is free-to-play. With the release, Niantic became worth $3.65 billion. The app is topping both iOS and Android platform download charts.

But Niantic isn’t the only company counting dollars from the game’s success. There are other, too that are taking bag full of money home. Keep reading:

The Trio – Niantic, Nintendo and The Pokemon Company

The Pokémon Company is one of the key companies that are making money because of success of the game. In September 2015, Niantic and Pokémon Company announced a partnership to develop a game under which Niantic got all legal rights to use The Pokemon Company’s trademarks. At this moment, 30% of each in-app purchase goes to the Pokemon Company.

The release of the game led to a phenomenal rise in Nintendo’s share that helped it double its share price and to add $7.5 billion to its market value. Though an announcement later plummet its shares but its value is still over 50% with a worth of $42 billion. Further, it owns 32% stakes in Niantic and is all set to make billions in coming year.

The Silent Money Makers – Apple and Google

That’s Google. Google is a silent partner of the Pokémon Go. When Niantic and Pokémon Company announced their upcoming project, Google and Nintendo invested $20 million in Niantic for development and an announced investment of $10 more million if it achieves some publically non-disclosed goals.

Thus, Google has stakes in the company. Other than that, Niantic has only 3 patents which makes it highly vulnerable to patent trolls. Google being it stakeholder and with a decent number of patents in the AR, may enter into a patent licensing agreement with Niantic. I am not sure of this dynamic though but there are possibilities.

Apple and Google are earning a load of money through in-app purchases. At this moment, if a player buys Pokeballs or Pokecoins of worth $100, Google or Apple (depending upon the App Store) get $30 from that.

Apple, at present, is making $1.6 million per day from the in-app purchases. These numbers are expected to increase in the future and Apple is expected to make $3 billion in revenue from Pokémon Go in the next one or two years.

Taxi Services in Europe

Nobody even in his wild imagination might have guesses that a game could increase business of a taxi service. But Lynk, the Dublin taxi app, is witnessing this. It is inundated with requests to ferry people around the city to search and capture Pokemon. Lynk, hence, now is offering a fixed-fare Pokemon themed ride around the city.

About Author: Vipin Singh is a technology enthusiast and a movie buff who loves to read and writes about upcoming technologies and companies strategies. In his free time he adds extra sugar in his tea.

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