Positives and Negatives of the Pokémon Go Phenomenon

The wildly popular Pokémon Go has introduced augmented reality to millions of players. Here are some of the positives and negatives to the game.

Many gaming industry analysts had all but given up on Nintendo’s fortunes. However, the company is now enjoying a sudden resurgence with the launch of Pokémon Go, proving that a 20-year-old franchise such as Pokémon can be a hit as a revitalized augmented reality game on smartphones and tablets. Nintendo’s core console business may still be struggling, but Pokémon Go’s success has added billions to its valuation.

Augmented reality hasn’t received nearly as much attention as virtual reality, but it’s clear now that it should. In fact, the success of Pokémon Go could prove to be the killer app for augmented reality that triggers a boom in developing games and other augmented reality software. Pokémon Go is just the tip of the iceberg for augmented reality.

Niantic Labs had modest success before Pokémon Go hit the market, but now, the company has become the hottest mobile developer in the industry. With one game, Niantic has established itself as the leader in augmented reality that big brands will want to visit if they plan to create a Pokémon Go-like app.

Niantic Labs was founded as a startup inside Google. However, after Alphabet was formed and Google became a subsidiary of Alphabet, Niantic was spun off into its own operation. Just a month after the spinoff, Niantic announced its plans to develop Pokémon Go last year, and Google, Nintendo and the Pokémon Co. invested a reported $30 million to help Niantic get the game to market. Thus, Google and its fellow investors are sitting on a very good investment in Niantic Labs.

According to data released by survey service Survey Monkey, at its peak, Pokémon Go had 21 million gamers playing the game, making it the most successful mobile video game launch in U.S. history. The game is far more successful than Candy Crush Saga, Angry Birds and other mobile games that were addictive hits. And it took less than a week to achieve that goal.

There has been rampant speculation over the business models that would carry mobile apps into the future and whether companies should charge customers to download their apps. Now it’s clear that free apps can work. According to some estimates, Niantic is making more than $1 million per day on Pokémon Go, despite it being a free download. The company has generated that cash through in-app purchases of PokeCoins. In one fell swoop, Niantic Labs has confirmed that free apps can be huge financial successes.

Pokémon Go also has been the reason for a recent uptick in crime, according to reports. Several police stations around the country report criminals luring Pokémon Go players into alleys or tracking them through the game to commit armed robberies, carjackings and other crimes. Police agencies have become so concerned that they have issued public warnings for people to take precautions when walking around town and playing the game.

Pokémon Go also has been the cause of serious injury-causing accidents. There have been several reports around the United States of drivers playing Pokémon Go when they crashed into other cars or even trees. Still others have paid too much attention to their phones, only to walk into dangerous areas and suffer injuries. News reports on July 14 said two men fell off a beachside cliff near Encinitas, Calif., while playing the game. Both men required hospitalization.

Despite those drawbacks, Pokémon Go has been an unbridled success. According to data from SimilarWeb, Pokémon Go’s daily active user count is higher than popular social apps including Twitter and LinkedIn as well as music-streaming app Spotify. For now, there’s no telling when its download count and usage might slow.

Seeing the potential for business opportunities with Pokémon Go, many companies have set plans into motion. Local cafés and restaurants have made their locations Pokémon-friendly to lure customers into their stores. Meanwhile, reports have surfaced saying big ad agencies are looking for ways to display ads in the game. Pokémon Go has created a whole new way of marketing to prospective customers and businesses.