Investors have been urging Nintendo to get into the mobile business for years, and the company’s stock value has been steadily rising for months partially thanks to announcements regarding Super Mario Run. However, investors weren’t quite as pleased on launch day as you might expect. Instead of providing Nintendo with a huge stock boost, the launch of Super Mario Run saw Nintendo’s value decline by 4.24%.

So what’s causing this lack of faith among shareholders? According to Niko Partners analyst Daniel Ahmad, the pricing model appears to be a concern.

“The main concern for investors right now is whether consumers are willing to part with $10 to unlock the full game. The upfront cost is something rarely seen in mobile games today that are targeting a large player base, as Nintendo clearly is through the promotions on the app store and use of their most popular mascot. The spending cap is certainly being seen as an obstacle stopping Nintendo from generating revenues as high as Pokémon Go back in July.

“We’ve seen a number of complaints around the price of the game, especially on the app store where a number of 1 star reviews have been left by users for this reason. We’ve also noted that the first three levels can be completed very quickly and that players may not have had enough time to really play the game before hitting the mandatory paywall to unlock the full game. The payment screen is also quite confusing as it doesn’t explicitly state the the $10 is a one off payment to unlock the entire game.

“The game is already the top grossing title in the UK which shows there is a willingness from many Nintendo fans to pay the $10 to unlock the full game. However, it remains to be seen if the wider mobile gaming audience will jump in and pay too.”
— Daniel Ahmad

Despite these issues, Super Mario Run is proving quite popular early on. Day one stock surges and drops are often unpredictable, and it will probably take some time for the app’s real impact on Nintendo’s stock to be understood.

Source: Google Finance, MCV UK

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Ben Lamoreux

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