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But unlike most games, Pokémon Go has another important potential revenue stream: since most people playing the game give it access to a great deal of data about their locations and movement, Niantic could build a huge database of customer information that it could then sell to marketers and advertisers. Microtransactions are at the heart of most popular mobile games, and they can be enormously lucrative the mobile-games developer Supercell, which makes Clash of Clans, for example, brought in more than two billion dollars in revenue last year, despite having only a hundred and eighty employees. You can download and play the game for free, then pay for items that will help you succeed-for instance Poké Balls, egg incubators, or incense. Pokémon Go’s business model is built on microtransactions. Across a few days, Nintendo’s market capitalization rose by more than twelve billion dollars. Unsurprisingly, that has investors excited about the profits the game could bring in for Nintendo, which introduced the original Pokémon twenty years ago and which now owns a stake in Niantic, the game studio that built Pokémon Go.
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The augmented-reality game, which requires players to walk the streets hunting down animated creatures, has been downloaded more than fifteen million times and is already on more than ten per cent of all Android phones. Less than two weeks after its release, Pokémon Go has become one of the most successful mobile games of all time. Welcome to the Week in Business, a look at some of the biggest stories in business and economics.