Nevertheless, some analysts remain upbeat about the popularity and revenue potential of the app.
“10 percent or so (of users who download the app) are most likely willing to pay, probably even more,” Goyal said, “In Japan alone, people have bought 25 million 3DS devices for $200 apiece to be able to play Nintendo games. For them to spend $10 to play a Nintendo game on a device they already own (is practically nothing).”
Goyal said that Nintendo’s newfound commitment to mobile means that its customer base and revenue stream will expand considerably. This is because the company’s positioning will allow it to target the casual gamer market, which numbers around 1 to 2 billion, he added.
As for whether the ephemeral nature of mobile gaming apps — “Pokemon Go” itself has dropped off in recent times due to saturation — is a drawback to Nintendo’s mobile ambitions, Goyal said that this was not a cause for concern.
“It’s not the console that you remember … What you remember (are) Nintendo games,” Goyal said, “So don’t look at console versus mobile, it’s the intellectual property (and) the brand that Nintendo brings — Mario, Zelda, Pokemon … plenty others.”