Super Mario Run has had a stellar debut on the App Store, but Nintendo’s investors are still wary. At last report, Nintendo’s stocks have fallen by around 5 percent.

Recode reports that Super Mario Run shot to the top of the App Store in the US within an hour of its release, it took the second spot in terms of revenue generated in the US and seventh place in terms of revenue generated globally. The report adds that the game generated around $1-1.3 million in revenue in that hour and is projected to earn over $60 million in the first month.

That’s huge.

However, CNBC reports that investors are still cautious. Analysts predict that the game will be downloaded 500 million times on the App Store and at least as many times on the Play Store after its Android debut.

Despite these signs, investors are worried about the high price of the game and the profitability of Nintendo’s new mobile game model.

At a time when most mobile games are free and even $2.99 (around Rs 200) are considered expensive, Nintendo is expecting gamers to pay $9.99 (around Rs 700) to unlock the full game. Investors do appreciate the fact that Nintendo’s die-hard fans, particularly in Japan, will be more than willing to pay that $9.99. Various analysts agree that around 10 percent of the game’s players will pay the fee.

Another worry for investors is the fact that Nintendo’s mobile revenue model won’t get any traction for a few more weeks at the earliest. In fact, Nintendo’s stock is expected to fall further in the coming weeks.

Pokémon Go, a game based on Nintendo’s intellectual property but not actually made by Nintendo may have also contributed to investors’ wariness. The game became an overnight sensation and Nintendo stocks had soared at the time, but it wasn’t until later that investors realised that Nintendo had little to do with the game and that revenue was relatively insignificant.

Publish date: December 16, 2016 12:03 pm| Modified date: December 16, 2016 12:05 pm

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