A BIG Pokemon Go update from Niantic has confirmed the kind of financial muscle Niantic can call on as they head into revealing the latest news and features for the game.
UPDATE ONE: Away from the impressive Pokemon Go update on finanacial stats recently revealed by Niantic, another report claims that revenue is also up at the Pokemon Company.
The latest news suggests that profits may have leapt by as much as 26 times on last year’s, an incredible figure if proven true.
Last year’s net profit was reported at $5.6 million, a mere trifle compared to this year’s net profit, now reportedly sitting at $143.3 million.
The latest figures come courtsey of Serkan Toto, who found the information in Japan’s Kanpo gazette.
The Tokyo-based games industry consultant provided this on the startling information: “A lot of private companies that are structured in a certain way communicate some financials (not all) in the “Kanpo”, the official government gazette, at regular intervals.
“The Pokemon Company did so on May 30. The gazette shows (via Kanpo Blog in Japanese) that the release of Pokemon Go last summer and of Pokemon Sun/Moon last holiday generated some handsome income for the company.
“According to the disclosure, net profit reached a staggering US$143.3 million in the fiscal year that ended on February 28, 2017 (there are no sales figures given).
“That year was the Pokemon Company’s 19th fiscal in its history. In comparison to the previous fiscal, net profit jumped by a factor of 26.”
The information provided does not go into the details of how the revenue was generated but does give a significant look at the big impact Pokemon Go has created through in-app purchases and sponsorship deals.
While no longer able to boast hundreds of millions of active Trainers, the game still includes a large player count globally.
And that could also help explain some incredible new numbers being thrown around by developers Niantic.
PokeStops and Gyms play a pivotal role in gameplay but also have another special function that fans may not know about.
While everyone knows the Pokemon Go news that the game is supported by in-app purchases, you may not know the sheer scope of sponsor impact.
In a recent interview, Niantic VP of strategic partnerships Mathieu de Fayet confirmed a number of new details about the game, including Legendary Pokemon launch for this summer.
He also revealed how the game works with sponsors, adding: “The idea is to offer players items at certain locations, and partners pay $0.15 for each visitor attracted to the game.
“And we’ve already attracted 500 million visitors. In Japan [at the game’s peak last summer], each activated McDonald’s store attracted 2,000 visitors a day.”
TechCrunch has worked out that this would have created around $75 million in revenue for Niantic.
However, according to Niantic, the number listed in the interview was even HIGHER, revealing: “Niantic’s cost per visit (CPV) model visit has partners spending less than $.50 / daily unique visit to sponsored locations.”
So that new number would work out at $250 million in revenue for the AR specialists.
“Given that McDonald’s Japan activated 3,000 stores in the country, that price would mean that at the game’s peak, the fast-food giant would have paid out roughly $900,000 per day to Niantic for the Pokémon GO sponsorship at $0.15 per visitor, or $3 million per day at $0.50 each,” TechCrunch adds.
Sponsorship in Pokemon Go can extend to Gyms being created at certain locations, as well as PokeStops, where Trainers can grab the gear needed to catch Pocket Monsters.
De Fayet also gave a pretty frank rundown of what is being cooked up in terms of Pokemon Go updates right now.
In an interview with Globo, de Fayet explained: “Because of the great success, we had to put off some planned news.
“Now, we are working in announcing new updates for the next summer (Northern hemisphere), like giving more value to the choice of teams, the announcement of the Legendary Pokemon and the battles between the players.
“One thing which we learned with “Ingress” is that the game sustains itself if we are capable to create social interactions between the trainers, and we are working on that.”
The reference to the Northern hemisphere may mean a gradual regional rollout of these new Pokemon Go updates, although this has yet to be confirmed by Niantic.