Pokémon GO: change in paradigm
The new video game for smartphones with elements of additional reality - Pokémon GO captures the world. For those who are not in theme, in the game you travel through the streets looking for Pokémon’s.
After the realize of Pokémon GO Nintendo shares rose by more than 50% in a few days. This game has changed the IT industry dramatically. Still it was not for the first time for Nintendo. Company has done the same thing before - when in 1980 moved from slot machines to manufacture the of games consoles.
Company has created genius games - Donkey Kong and Super Mario. Just for information the company's mission - "to make people around the world to smile." In Nintendo has an incredible ability to invent characters that not only bring joy to people, but also to remain relevant for a long time.
####Pokémon`s have appeared more than 20 years ago.
The key to survival in a volatile and cyclical technology business is the relationship between games and consoles. Hype about the new game may be short-lived, but it encourages consumers to buy the console, and then the new games. Creativity has always been the driving force behind Nintendo. So what could be better for Japanese companies than new, younger generation of iPhone users and smartphones on Android, traveling around the world.
However, Nintendo does not own Pokémon GO. It owns only 33% in Pokémon Company, which in turn transferred the license to Niantic - US startup to develop games with augmented reality based former top manager of Google. In the past, Nintendo has invested in Niantic, however, the percentage of Japanese companies are relatively small.
A small proportion of a successful project is better than nothing, but here is much important thing. To enter into the world of smartphones the company appealed to the partners. Besides Niantic, Nintedo together with the Japanese DeNa is working on five new games for smartphones.
Until 2016 the company only was involved in development of games for their consoles.
Everything changed with the entry of mobile devices: Nintendo has no control over the platform and forced selling games for iOS and Android, in competition with other publishers. This is the difference of the current transition from the past, when the company changed a closed technology (slot machines) to the other (console).
New technologies include geolocation, virtual and additional reality. This gives the advantage of software vendors from Silicon Valley, including startups like Niantic. Over time, Nintendo will be able to understand the principles of behavior in the mobile world.
In addition, the business model of mobile gaming appeals to human curiosity. Pokémon GO - a great example of this: the players download the game for free and then buy additional items. According to statistic more than 96% of active users did not buy anything in the application.
Still mobile games can be profitable, because Pokémon GO does not affect directly the sales of game consoles and company must constantly come up with new games in hopes of their popularity to help recover the costs.
In some ways, Pokémon GO is ideal for such a paradigm shift. Company will be able to create popular characters.
Who does not like to hunt for cute monsters?
Best regards,
Denis and Dima
