Pokémon Go may have captured the imaginations of players and investors alike, but the financial prospects of the innovative mobile game have been significantly overblown.
It's easy to get caught up in the revelry when a free product or service enjoys a grand reception, but investors mustn't underestimate how hard translating this interest into profit can be. The views that all parties profit equally and that one success will automatically mean more can also be misplaced.
Pokémon Go is the latest entry in the blockbuster Pokémon franchise, which Japanese video game giant Nintendo (JP:7973) first introduced two decades ago. Similar to past iterations, it revolves around tracking and capturing the eponymous, cute and cuddly monsters. The twist is that US developer and Google spin-off Niantic, which licensed the rights to the franchise from Nintendo and The Pokémon Company, has integrated Google Maps, augmented reality technology and the user's smartphone or tablet camera into the game allowing players to see Pokémon overlaid on a virtual version of their neighbourhood.