Jul 26, 2016 - Apple has confirmed that the app set a new record for first-week downloads. ⢠In contrast to traditiona
JULY 26, 2016
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• Although Pokémon was originally a video game for kids, the latest incarnation—Pokémon Go—has amassed an adult audience as well. • Apple has confirmed that the app set a new record for first-week downloads.
a Stealth Fitness App?
• In contrast to traditional video games, which are played while sitting at home, Pokémon Go players (kids and adults) have to go outside and explore their neighborhood in order to find monsters, PokéSpots, Gyms and eggs, which means players are getting real fitness benefits. • To incubate collected eggs, which hatch into a player’s own monsters, a player must travel 1.2–6.2 miles (2–10 km), depending on the kind of egg being hatched. • Many players are reporting on social media the number of steps they have taken while playing the game by posting data from their fitness bands, and apps that encourage social interaction between players have also emerged.
DEBORAH WEINSWIG, MANAGING DIRECTOR, FUNG GLOBAL RETAIL & TECHNOLOGY
[email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2016 The Fung Group. All rights reserved.
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JULY 26, 2016 SUMMARY Pokémon Go has experienced phenomenal success since its US launch on July 6. One key difference about this version of the game is that it requires players to leave their residence and travel around their neighborhood and city in search of monsters and eggs, the latter of which hatch into monsters and provide points and other benefits. To hatch the eggs, players must travel 1.2–6.2 miles (2–10 km), depending on the type of egg, which is motivating fitness buffs and could serve to get sedentary kids (and adults) to start exercising. ABOUT THE GAME Since its July 6 launch, Pokémon Go has become a runaway success among kids and adults alike. Apple confirmed to gaming website Polygon.com that the app had set a new record for first-week downloads via its App Store, although it declined to give specific figures. Venture Beat estimates that the game has earned $1.6 million per day since launch, putting total revenue at $35 million to date. According to Needham & Company, Apple could see a total of $3 billion from the game over the next two years. Since its July 6 launch, Pokémon Go has become a runaway success among kids and adults alike. The app set a new record for firstweek downloads in Apple’s App Store.
Source: Miami Herald
GETTING PLAYERS OUT OF THE HOUSE Whereas traditional video games are typically played sitting down, Pokémon Go requires players to get up and walk out of the house. The game uses augmented reality superimposed on a smartphone’s camera feed to create images that combine real camera views with computer-generated Pokémon characters. The player walks around the neighborhood to catch monsters (by targeting them with Poké Balls), and to find PokéSpots (where Poké Balls and other items can be obtained), Gyms (where the player gains experience points and items) and eggs, which can hatch into monsters and provide experience points and Stardust (which is used to increase one’s level). EGGS EQUAL EXERCISE Eggs can be found randomly at PokéSpots and are given occasionally when the player gains a particular experience level. Eggs come in three varieties, based on the distance the player must travel with the incubator in order for the monster to hatch from the egg: 1.2 miles, 3.1 miles and 6.2 miles (2 km, DEBORAH WEINSWIG, MANAGING DIRECTOR, FUNG GLOBAL RETAIL & TECHNOLOGY
[email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2016 The Fung Group. All rights reserved.
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JULY 26, 2016 5 km and 10 km, respectively). Players receive one incubator at the beginning and gain additional ones as they gain levels. The figure below shows the various monsters that can hatch over respective distances. Figure 1. Pokémon that Can Hatch over Respective Distances Eggs come in three varieties, based on the distance the player must travel with the incubator in order for the monster to hatch from the egg: 1.2 miles, 3.1 miles and 6.2 miles (2 km, 5 km and 10 km, respectively).
Source: Alphr.com DEBORAH WEINSWIG, MANAGING DIRECTOR, FUNG GLOBAL RETAIL & TECHNOLOGY
[email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2016 The Fung Group. All rights reserved.
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JULY 26, 2016 PHENOMENAL RESPONSE The launch of Pokémon Go has generated an unmistakable response among fitness enthusiasts. In the graph below, we see a marked increase in exercise activity among users of Cardiogram—an app for the Apple Watch that measures heart rate—starting after the July 6 launch of Pokémon Go. The launch of Pokémon Go has generated an unmistakable response among fitness enthusiasts. There was a marked increase in exercise activity among users of fitness app Cardiogram.
Figure 2. Percent of Cardiogram Users Getting 30 or More Minutes of Exercise per Day 60.0
Pokemon Go Release (July 6)
52.5
45.0
Jul 10
Jul 8
Jul 6
Jul 4
Jul 2
Jun 30
Jun 28
Jun 26
Jun 24
Jun 22
Jun 20
Jun 18
Jun 16
Jun 14
Jun 12
30.0
Jun 10
37.5
Source: Cardiogram
The reaction on social media has been equally explosive. The figure below shows the number of steps taken by Jawbone UP users who posted their steps on social media along with a specific reference to Pokémon Go. The reaction on social media has been equally explosive. There was a marked increase in the number of steps taken by Jawbone UP users who posted their steps on social media along with a specific reference to Pokémon Go.
Figure 3. Jawbone UP Users: Total Number of Steps Taken by Those Posting to Social Media with a Reference to Pokémon Go
Source: Jawbone UP DEBORAH WEINSWIG, MANAGING DIRECTOR, FUNG GLOBAL RETAIL & TECHNOLOGY
[email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2016 The Fung Group. All rights reserved.
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JULY 26, 2016
Deborah Weinswig, CPA
Managing Director Fung Global Retail & Technology New York: 917.655.6790 Hong Kong: 852.6119.1779 China: 86.186.1420.3016
[email protected] John Harmon, CFA Senior Analyst
HONG KONG: 10th Floor, LiFung Tower 888 Cheung Sha Wan Road, Kowloon Hong Kong Tel: 852 2300 2470
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DEBORAH WEINSWIG, MANAGING DIRECTOR, FUNG GLOBAL RETAIL & TECHNOLOGY
[email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2016 The Fung Group. All rights reserved.
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