5 things I don’t get about Pokemon Go

Nintendo. No entiendo. I don’t understand Pokemon Go.

Pikachu has leveled up and Raichu has started a serious storm around the world. But there are still some things I just don’t get about Pokemon Go.

1. What is the exact relationship between Niantic and Nintendo?

Nintendo added billions to its market value in a number of days. Image credit: Google.

The game was created by Niantic and uses a lot of the scaffolding it made for its other GPS-based indie hit, Ingress. The Nintendo logo isn’t even on the official Pokemon Go website. The Japanese company is barely listed in a footnote for trademark.

Yet, Nintendo’s stock is soaring like Moltres, nearly doubling to US$37 billion in a week. What is the structure of the two companies’ relationship? Nintendo invested in Niantic last October along with Google and The Pokemon Company. Even if there is some major revenue share going on, the numbers don’t add up.

Let’s pretend there are four sushi restaurants in Japan. Capcom Sushi, Konami Sushi, Sega Sushi, and Nintendo Sushi. I want to start a chain in California, so I plan to buy a restaurant and bring it over. To make the best choice I look at revenue to help figure out how much money each shop could potentially make me in the US.

I am willing to pay up to two-and-a-half times the revenue of each store for Capcom, Konami, and Sega. But Nintendo is different. Its new conveyor belt system built by Niantic looks promising. Although sales have not changed for five years I am convinced this technology is a thing and offer ten times the amount the restaurant made last year to buy it. The sushi world thinks I am crazy because everyone knows money for sushi sold through the belt goes to Niantic and a few other companies first before coming to me.

But people in Japan are crazy for Nintendo. There is an old investor saying directly translated as, “Even if it’s rotten, Nintendo.” Meaning even if it’s not in it’s glory days, Nintendo is a wise choice. Careful though, seafood doesn’t keep well.

Nintendo still hasn’t returned to pre-Lehman Shock levels. Image credit: Google.

2. Why can’t stores block access?

3. Why hasn’t it been featured on the app store?

4. Why did they change the names?

5. Why hasn’t it launched in its home country?