Nintendo shares double on Pokemon Go frenzy

Nintendo shares today proved to be as addictive as its hugely successful smartphone game Pokemon GO, surging 14% in Tokyo to more than double their value prior to the game’s launch.

The free-to-play augmented reality game, in which users find and train Pokemon monsters like Pidgey and Rattata in real world surroundings, launched July 6. Shares have since rocketed from 14,490 yen to 31,770 yen - a near-120% gain.

The company’s worth has ballooned to 4.5 trillion yen (£3.2 billion), more than Sony, Yahoo and Glencore, on demand for the product, which is on more Android smartphones in the US than dating app Tinder. The potential boost to Nintendo profits has been put at 50 billion yen.

Pokemon GO is a step change for Nintendo, which in the past frustrated investors by resisting putting popular characters like Super Mario and Pikachu on mobile games to protect its consoles business.

But ETX analyst Neil Wilson warned Nintendo shares are entering bubble territory: “What goes up this fast usually comes down with a bump.”

There have also been fears for safety after reports of injuries while playing.