Pokémon Go or No Go?

The world was buzzing – everywhere I looked I saw people with phones looking oh so determined.  It was so weird at the sime time. People walking around trees. Two guys come, walk about, leave, and then others come. It was so interesting to watch.

I guess I had to find out what’s going on. So, yes, I admit, I installed Pokémon Go too. Straight away one creature showed up on my bed – how exciting. I walked around my flat and found a few more.  This was going to be interesting!

I have to say it was quite convenient for me to try it out – as I was on maternity leave at the time and did lots of walking around with the buggy, trying to get the little one sleep. I was quite ashamed to publicly show I had the game on my mobile, so was trying to pretend I wasn’t actually playing the game (no sudden movements when trying to catch the Pokémon) but doing something way more important than that.

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So in time I got quite used to having the game run in the background, and caught a few Pokémon. I saw regular players in the hot-spots too – some young kids, some quite mature ladies, and a few bearded fellows.

I also checked what these gyms were – but it was just so odd to see players with creatures never seen before in the area, with levels going up and up. Well, I thought, they had to be cheating. And being a curious creature I found out how that’s done – with fake GPS and some tweaks you can pretend you’re anywhere in the world. I thought that I have now proved the point that a random player who always gets kicked out of the gym can play the game the cheaters were playing and suddenly get some sweet revenge. However, I have to congratulate the developers of finally developing tools to stop the GPS location cheating (you can read the pokemongohub article here).

So after a few oh-so-sweet revenge attempts, I went back to playing the game by the rules and continued my walks with the game running in the background. But in time, it had become quite boring as the creatures kept repeating – how many Pidgeys or Rattatas can you capture before you’re totally fed up. So I didn’t even notice how I stopped using the app altogether and the game gradually became a No Go. I saw the game updating once in a while, so I opened it up a few times just to see what’s changed, but I never got back to it again.

So that’s my story – but what I always wanted to know is: how much money did they make..?

Players spent / are still spending hours in this game, and I’m pretty sure a lot of them use in-app purchases…  Have a look at the chart below from Statista – the biggest spenders in this game are actually  25-34 year olds (who should be wise enough not to spend money on mobile games). That’s just me talking – sometimes you never grow out of it – almost 8% of 65 years old use Pokémon Go  in-app purchases (that’s in the US).

pokemon-age-spenders.PNG
Distribution of Pokémon GO in-app spenders in the US as of July 2016, by age group. (Statista)

Let’s talk money now.

Me being the average user and losing interest in the game wasn’t a one off. The company’s profits went down toward the end of last year. Check this Forbes article “Revenue Ran Away: ‘Pokémon GO’s Lost Billions” ; but this January saw very positive updates, with statements such as “Pokémon GO has brought in $180M of profit for Nintendo”.

See below the annual revenues generated by Pokémon Go worldwide from 2016 to 2020, by region (in million U.S. dollars), including the projection for the coming years. It’s estimated that the game will bring approximately 636 million U.S. dollars in revenue.

profit pokemon go.PNG
Annual revenues generated by Pokémon Go worldwide from 2016 to 2020, by region (in million, USD) from Statista

 

If you are curious and want ot analyse the profits per share and return on equity, have a look at their financial statement. See the Nintendo consolidated financial statements report here.

profit screenshot
An extract of the Nintendo consolidated financial statements report

 

Right, the data below was an eye opener for me. Look at the following information given by ThinkGaming about Pokémon Go:

  • The revenue estimate is $222,359 a day 
  • 28 856 daily installs estimate
  • Ranked #8 on Top Grossing Games & #49 on Top Free Games – May 9, 2017

Next time you are about to buy 10 Pokeballs in the game (or whatever the amount) think about the numbers above. Or even better – check how long you need to work to earn that few dollars or pounds – do you think that’s where you want to spend your hours’ pay on? This strategy usually works for me (I’ve written previously about the salary checker I’ve discovered from Retale). And if you feel like you are still in spending mood, you can check eBay and find high level player accounts for sale, or splash some money on the Pokemon Go Watch (I’ve never tried this one out, have you).

OK, let’s cheer up and finish up on a funny note. As you know, catching Pokémon (not GPS cheating) involves walking (in real life!) so, this means you can get fit and lose weight!

If you catch 20 Pokémon a day – it will take 14.8 days for a man and 17.5 days for a woman to lose a pound of weight (1 pound = 0.45 kilograms).

Infographic: Pokémon Go could help you lose weight | Statista

 

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