Nintendo stock takes a nosedive

In the first week Pokemon Go was released Nintendo's shares went through the roof, but now was the dust settles, investors are realising that Nintendo are not the company that will profit the most from the runaway success.

Nintendo is set to release their first-quarter results this week. This follows a press release by Nintendo outlining the financial impact of Pokemon Go. They describe their profits as "limited" and explain that they will be revising their profit forecast, taking this information into consideration.

They also explain, in the statement that "[Pokémon Go] is developed and distributed by Niantic [and] The Pokemon Company [which] holds the ownership rights to Pokemon. The Pokémon Company is going to receive a licensing fee as well as compensation for collaboration in the development and operations of the application.

"[Nintendo] owns 32% of the voting power of The Pokémon Company."

This press statement seems to have caused a commotion amongst investors and stock prices have fallen dramatically. They dropped 18% in a day on the Tokyo Stock exchange, the company's biggest drop since 1990.

Despite this Nintendo are still doing better than prior to Pokémon Go, with shares doubling in value since the beginning of July.