Poké mon Go' Launches in Japan
July 22 2016 - 12:00AM
Dow Jones News
TOKYO—Hit mobile game "Poké mon Go" launched in Japan on Friday
along with a tie-up deal through McDonald's Japan unit, in a move
that could help boost the app to become one of the most successful
smartphone games in history.
The game is expected to rise to the top of app-store charts in
Japan, one of the world's largest videogame markets by revenue
because fans had long waited for the launch in the country since
"Poké mon Go" was first introduced two weeks ago in New Zealand and
Australia, followed by the U.S.
It look less than a day for the game to take the position of the
most-downloaded and top-grossing smartphone game after launching in
countries like the U.S., the U.K. and Germany, according to data
provider App Annie.
Developed by Nintendo affiliate Poké mon Co. and Niantic Inc.,
which was spun out of Alphabet Inc.'s Google last year, "Poké mon
Go" was built around location-tracking and augmented-reality
technology that allow players to capture cute monsters such as the
chubby yellow creature Pikachu. The game is free to download, but
the company earns revenue through in-app purchases such as incense
to lure Poké mon characters.
As an additional revenue source for the game, game publishers
have teamed up with McDonald's in Japan, making its restaurants
across the country a key place where players will be able to
compete against other players and collect items. The deal marks the
first partnership for the game, but Niantic has said it would seek
more corporate sponsors for the game.
Nintendo Co., which owns a minority stake in Poké mon Co., saw
its share price rise 4% after the launch in Japan, while McDonald's
Holdings Co.'s shares rose 6.6%.
The game has already proven to be a blockbuster. Social media is
flooded with people saying how the game has changed their lives and
there is an economy centered around the game with small merchants,
souvenir stores and restaurants advertising that they are good
locations to catch the monsters.
"Poké mon Go is now the biggest mobile game ever in the U.S.,"
said David Gibson, an analyst at Macquarie Capital Securities.
Mr. Gibson said the game is on its way to become the world's
first smartphone game to earn $4 billion revenue annually from
in-app purchases if it attains the top-grossing position in Japan.
Supercell, a Finland-based smartphone-game maker with popular
titles including "Clash of Clans," generated $2.3 billion revenue
in fiscal 2015.
Nintendo, which indirectly benefits from the game mainly through
its 32% stake in Poké mon Co., saw its share price more than double
since the game's rollout. The Kyoto-based company also plans to
sell a $35 optional hand-held device called "Poké mon Go Plus" this
month.
Despite the popularity of the game, there are increasing
concerns about safety. As the game requires players to pay
attention to their smartphone screens constantly while moving,
there have been reported cases of injuries with some authorities
issuing warning messages in using the app.
In Indonesia, where the game hasn't yet launched but users have
been downloading it unofficially, the government has expressed
security concerns and banned at least 4.5 million of its employees
from playing it at work because the game uses location
tracking.
The state apparatus and bureaucratic reform minister, Yuddy
Chrisnandi, said in a statement the move was to "maintain security
and [protect] state secrets."
Anita Rachman in Jakarta contributed to this article.
Write to Takashi Mochizuki at takashi.mochizuki@wsj.com
(END) Dow Jones Newswires
July 22, 2016 00:45 ET (04:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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