Pokémon GO Takes Over

Key Takeaways:
 A well-managed brand can create decades worth of value
Moving to a platform with a huge install base provides an opportunity to capture even more value than originally predicted

Never count Nintendo out

        (They’re here to stay. Credit: www.Forbes.com)

Some of you may have seen in the past few months that Pokémon has returned to the mainstream media with a vengeance. On July 6^th, Pokémon Go, Niantic’s Pokémon themed mobile game hit the app store in the United States, and has caused a frenzy across the country. In only a few days since released, it has been able to accomplish the following:

1. Raised Nintendo’s market value over 9 Billion (yes, billion) dollars
2. Topped the daily user numbers of Twitter, Tinder (on Android phones), and more engagement than Facebook
3. Brought to light just how powerful a well handled brand can be sustainable over time

Suffice it to say, the game is a huge success. In fact, the peak daily active users have been so high they have broken the record for a mobile game previously held by Candy Crush. Pokémon Go may even approach the numbers of Snapchat and Google Maps. Few people could have predicted the runaway train of success. As a result, Niantic, The Pokémon Company, and Nintendo have been reaping the rewards. Even I forgot to mention it back in April during my Pokémon post as I focused on the core games. I was aware it was coming but I knew virtually nothing about it, and totally whiffed on the opportunity to talk about the opportunity it would give Nintendo for the future. While the interest has declined mightily after the summer craze, it has had a huge, immediate impact on the industry, showing just how powerful a well-managed brand can be.

                                             

                                            (Wouldn’t you want one? Credit: serebii.net)

So what exactly is Pokémon GO and how did it catch fire since its release? The premise is to create your own avatar and essentially go out in the real world and catch all nearby Pokémon that appear. Pokémon appear at random, and vary by location (I get a lot of bug Pokémon in my neighborhood, trying to say something about my living conditions Nintendo?). When a Pokémon appears on your phone screen, the user needs to touch it, and then a mini game will ensue using the augmented reality system in place. Basically, using the camera in the phone, the Pokémon will appear right in front of the user, and the user will then need to flick pokéballs at the creature in hopes of capturing it. After capturing a Pokémon, users can power them up, look to evolve them, and as the user’s level increases, battle their creatures at a gym. Gyms are real world venues that teams can take over and hold onto over time. Furthermore, there are places called Pokéstops, which are, again, real world locations where users can pick up items or more pokéballs. The game intrinsically pushes the player to walk to new areas to hunt for new gyms, creatures, etc. Furthermore, users can pick up eggs that will only hatch after a walking requirement has been completed. The walking requirements are also based in distance, not steps, and Niantic has prevented cheating by not taking movement data after a certain speed limit. There is currently no trading or battling friends, two of the key cornerstones of the franchise, and needs to be implemented for long term success. As far as I can tell thus far, these are the main objectives of the game, and admittedly, while I do find it fun and addictive, it lacks the depth I enjoy in the core Pokémon series.

                                           

           (The classics. Credit: www.Nerdist.com)

   

Regardless of what I think though, it has to be the most successful game in the franchise since the original Pokémon Red/Blue/Yellow. In my opinion, I do not think it’s that hard to understand why it’s become so popular. First of all, Pokémon has never lacked success, with 2013’s Pokémon X/Y selling nearly 14 million copies worldwide. That game was on the Nintendo 3DS, which at the time probably had an install base of around 20 – 30 million users. Pokémon Go was produced for iOS and Android platforms, where approximately 1.4 billion smartphones sold in 2015, so the install base was extremely larger than the 3DS. Since the app is free, there really is no reason to not give it a try, as opposed to the typical $40 price point for the core games. Nintendo essentially found all the users who had previously enjoyed the series but had switched to mobile for their preferred platform. The popularity has even spurned users to pick up old games, as sales of the original titles has increased dramatically. I look forward to seeing how Nintendo positions the renewed interest in the franchise from the app with the upcoming games in the series, Pokémon Sun/Moon.

                                             

                (Pokémon can be anywhere. Credit: Vox.com)

Furthermore, Pokémon Go may be the best secretive fitness app. Staying still to play the game will get you nowhere, you need to go find new places to find Pokémon and greater benefits. While there have been some drawbacks (ex. users walking into traffic, like your graceful author) they have not been nearly enough to outweigh the benefits. Gaming and gamers constantly fight a battle against stereotypes, the biggest being that gamers are out of shape. While more games have been made to get gamers fit, most of them have been fads (RIP Wii Fit and Dance Dance Revolution). Pokémon Go never announces its intention to be fitness, but walking and moving around is inherent in the gameplay. As a result, adults are pleased with the positive impact it’s having on their kids, and I commend Niantic for the sneakily great decision. Lastly, like Candy Crush and other successful mobile games, Pokémon Go does not throw micro transactions in your face. In fact, I had to search through the app to find out if there were purchase opportunities (there is a shop section, but you need to tap into the main menu to get there). It’s these savvy moves that make the game extremely likable and approachable, key ingredients for success in the mobile space. Finally, with the immediate success Nintendo has realized the value of the mobile space, and announced Super Mario Run at the recent Apple conference, an endless runner starring Mario, the company’s most famous character. As a result, the stock has increased dramatically again, as investors approve of the interest in mobile.

                                                   

                    

                                                 

                                     (Pikachu and Mickey together. Credit: Deviantart.com)

I have had a longstanding theory about the Pokémon brand that I believe has been confirmed with the early triumphs of Pokémon Go: Pikachu is my generation’s Mickey Mouse. Although gaming characters like Mario, Sonic, or (my personal favorite) Mega Man have garnered legions of fans, and while Spongebob Squarepants has certainly made a claim for the title, none of the gaming characters are nearly as beloved (I will concede that Mario is close). Spongebob on the other hand is beloved, but the part of his appeal had to do with the humor of the show was great for both children and adults. The humor for adults has certainly waned over time, thus hurting the character’s image. Pikachu on the other hand, is the perfect mascot. Cute but ferocious with a lot of personality, Nintendo really picked the perfect face of the franchise. The fact that he is semi rare in Pokémon Go only adds to the intrigue and appeal of the game. Furthermore, throughout the franchise’s 20 year history, there has never been a truly bad game, meaning that the character has always been associated with a quality product. Combine these attributes with an onslaught of merchandise featuring the electric rodent and you have a clear cut winner, one that clearly is not going to be slowing down anytime soon.