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Forums - Nintendo - Nintendo Only Gets About 10% Of Money Spent on Pokemon GO

onionberry on 11 July 2016
Turkish said:
Wowzers Nintendo only owns 1/3 of Pokemon? Someone(Sony? MS? Tencent?) buy Da Pokemon Company asap!!

Sony doesn't have the billions for that, MS have the money, but how are they going to buy something that is not for sale? plus, Nintendo has the exclusivity of the main pokemon games.



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ironmanDX on 11 July 2016

30 to pokemon, 10 to Nintendo... How much of pokemon does Nintendo own?



Aquamarine on 11 July 2016
DivinePaladin said:
pokoko said:
Hm, for some reason I thought they owned 51% of PokeCo.

They own a third and GF owns a third, with TPC owning the last third itself. But Nintendo also owns at least a third of GF (with TPC owning another third if my memory serves), so they're making far more than just 10% here since they're essentially the puppet master whenever they want to be. 

You got it backwards. Nintendo owns a third of Creatures Inc.

Game Freak is a completely separate third-party who can do whatever the hell they want.

See my previous posts in this topic:

 

Aquamarine said:

You're correct.

For those who are confused, it's like this:

 

Nintendo directly owns 32% of the Pokemon Company

Nintendo owns 35% of Creatures Inc. -> Creatures Inc. owns 32% of The Pokemon Company -> Nintendo indirectly owns 11% of The Pokemon Company

=

Nintendo owns 43% of The Pokemon Company directly and indirectly

 

 

30% of revenues from Pokemon Go go to The Pokemon Company, so Nintendo indirectly benefits from 13% of revenues of Pokemon Go (but they'll most likely just get reinvested into Pokemon)

In addition, an extra 10% of revenues go directly to Nintendo

=

Therefore, Nintendo benefits from 23% of revenues in total, excluding their small share in Niantic and the dividends they may accrue.

 

Aquamarine said:

Nintendo has significant influence over Creatures Inc. (35% direct ownership) and The Pokemon Company (43% direct and indirect ownership), so in the event Pokemon or Creatures Inc. tried to give the middle finger to Nintendo, then Nintendo would invoke a complex web of agreements and Japanese law to prevent Pokemon from going third-party even though Nintendo theoretically doesn't own a majority of Pokemon. Right now, Creatures Inc. can't do anything, so they just fall in line like good little peons.

If Nintendo decided to sell their share in Creatures Inc., then Game Freak and Creatures Inc. could technically gang up against Nintendo and put full-fledged Pokemon on iOS / Android / PlayStation 4 / Xbox / Steam. But that's not going to happen any time soon.

 

Game Freak is a third-party developer (Nintendo doesn't own a single share of Game Freak), so theoretically Game Freak could walk away any time they want from Nintendo and Nintendo would have to find a new Pokemon developer. That's why Sega just published a Game Freak game...nobody can tell Game Freak how to run their company.

But obviously Game Freak doesn't want to let go of its cash cow because that would be an incredibly risky venture with no guarantee of success. Pokemon works for them and it keeps them in business, so no need to rock the boat.


deskpro2k3 on 11 July 2016

What about Android, how much do they get?



Platina on 12 July 2016

The game seems to be doing really well, so it should be fine..



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Miyamotoo on 13 July 2016

Based on this opinion, Nintendo gets directly around 10%, but Nintendo also have 1/3 of share of Pokemon Company, so that's another 10%, Nintendo also have around 1/3 of share of Game Freaks that have 1/3 share of Pokemon Company and Nintendo ahve some share in Niantic itself, so at end Nintendo is getting probably around 25-30% of profit.



KLXVER on 13 July 2016
Miyamotoo said:
Based on this opinion, Nintendo gets directly around 10%, but Nintendo also have 1/3 of share of Pokemon Company, so that's another 10%, Nintendo also have around 1/3 of share of Game Freaks that have 1/3 share of Pokemon Company and Nintendo ahve some share in Niantic itself, so at end Nintendo is getting probably around 25-30% of profit.

So is Nintendo getting money for doing nothing then?



RenCutypoison on 13 July 2016
Acevil said:
pokoko said:
Hm, for some reason I thought they owned 51% of PokeCo.

33% of PokeCo, and they own unknown sum of creature who also have 33% of PokeCo, also financials from game stand point generally first go to nintendo than pokemon company. 

If they own 50% of creature, than the 51% could be true. 

They have no shares in Game Freak ? Nintendo also invested 20 millions in Niantic, up to 30 if the partnership goes well (so 30 millions pretty much confirmed).



Aquamarine on 13 July 2016
RenCutypoison said:
Acevil said:

33% of PokeCo, and they own unknown sum of creature who also have 33% of PokeCo, also financials from game stand point generally first go to nintendo than pokemon company. 

If they own 50% of creature, than the 51% could be true. 

They have no shares in Game Freak ? Nintendo also invested 20 millions in Niantic, up to 30 if the partnership goes well (so 30 millions pretty much confirmed).

Nintendo owns 35% of Creatures Inc, and 32% of The Pokemon Company, so they own 43% of Pokemon in total (this is insider info that's not often made public).

They own 0 shares in Game Freak. That's why Sega just published a Game Freak game...they are a third-party that's completely separate from Nintendo in every way.

Nintendo, Google, and The Pokemon Company combined invested $20 million into Niantic with an additional $10 million in additional funding if they hit certain milestones. It wasn't just Nintendo who invested the money.



Miyamotoo on 13 July 2016
KLXVER said:
Miyamotoo said:
Based on this opinion, Nintendo gets directly around 10%, but Nintendo also have 1/3 of share of Pokemon Company, so that's another 10%, Nintendo also have around 1/3 of share of Game Freaks that have 1/3 share of Pokemon Company and Nintendo ahve some share in Niantic itself, so at end Nintendo is getting probably around 25-30% of profit.

So is Nintendo getting money for doing nothing then?

Whole Pokemon Go idea was Iwata's idea, also they definitely giving some help to Niantic same like Pokemon Company, but most likely at least 80% job is done by Niantic itself.

Nintendo also releasing Pokemon Go Plus device, and most of profit will be taken by Nintendo of course.