Nintendo’s shares soared another 14.4% on Tuesday, with its market cap more than doubling to $42.5 billion (4.5 trillion yen) since the launch of Pokémon Go on July 6. To put the numbers into perspective, Nintendo is now worth more than Sony, which has a market value of $40 billion.
Pokémon Go is now available in 35 countries, and has already overtaken Twitter and Tinder when it comes to daily active users. Speaking to Reuters, a fund manager at an asset management firm in Japan said that the game will further boost Nintendo’s stock:
Virtual reality and augmented reality have been a focus of the market but hardly anyone was expecting Nintendo in this area. Suddenly Nintendo has become an AR-related stock. Under my rough estimate, the sales from Pokemon GO and upcoming related gadgets will boost net profits by 50 billion yen. Based on that assumption, Nintendo is traded at 30 times profits, which is not unreasonable.
The Japanese gaming giant has also announced that it would be launching a NES Classic Edition, a mini replica of the NES that comes with 30 pre-loaded games. The console will debut in the U.S. in November for $59.99, which includes one NES Classic controller, an HDMI cable, and an AC adapter.