Pokemon Go

Nintendo is rolling in cash at the moment thanks to the success of Pokemon Go. The app is reportedly being used more frequently than Tinder and has a matching daily active user percent to that of Twitter on mobile devices, which is very impressive.

Fortune is reporting that Pokemon Go, even though it's only launched in three regions at the moment (the U.S., New Zealand and Australia), it has managed to gain significant popularity and microtransaction sales numbers for Nintendo. In fact, more than 5% of all Android devices in the U.S., had installed Pokemon Go. It has a higher installation rate than dating app Tinder, which is only installed and running on average of 2% of all Android phones in the U.S.

Additionally, the data from research firm SimilarWeb reveals that more than 60% of the people who have downloaded the Pokemon Go app are actually using it. I know most people are thinking "Why would you download an app and not use it?" but there are a large number of apps that people grab from online but don't actually use, or they think they might plan on using it but don't. In this case, well over half the people who download the free Pokemon Go app are actually making use of it.

The report also reveals that on average players are putting in around 43 minutes of game time a day, which is a higher daily active usage rate than Instagram, Snapchat and WhatsApp.

There were a lot of questions about Nintendo getting into mobile gaming, with some hardcore gamers feeling as if porting their games to mobile phones would dilute the worth of their brands, but so far they seem to be maintaining the integrity and values that they're known for while also creating all new gameplay experiences thanks to their collaboration with companies like Niantic Labs.

Miitomo got off to a rocky but adequate start, but Pokemon Go has seemingly hit the ground running. The game has also single-handedly skyrocketed Nintendo's market value, pushing the company's market capital above $28 billion as of the publishing of Fortune's report. At the time of writing this article, the company's market cap has increased a whole 10%, blasting up from 24.5% on the Tokyo Stock Exchange, to 34.64%.

Ultimately, Nintendo has definitely found their niche with Pokemon Go. I'm sure some gamers might be wondering how this might affect sales of Pokemon Sun and Moon, which is due out later this year in November for the Nintendo 3DS. The handheld exclusive will face an all new challenge: can it still retain high sales among dedicated gamers even while Pokemon Go is on the market?

Some gamers feared that Nintendo putting some of their more popular franchises and brands like Mario or Pokemon on mobile devices might cannibalize sales of those brands on Nintendo's own dedicated portable devices such as the 2DS and 3DS. Well, we'll see how much cannibalization takes place with Pokemon Sun and Moon this fall when it hits the market. That's also assuming that the current user retention rate and daily active user numbers continue to stay high for Pokemon Go all throughout the summer and into the fall.

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