Pokémon GO: What Happens From Here?

By Andrew Cave

Dmitry Bagrov, Managing Director of DataArt UK, speaks with Forbes about the factors that contributed to the unprecedented success of Pokémon GO and the challenges to Nintendo’s continued dominance in the AR (Augmented Reality) gaming space.

“Anyone could have done this. This could easily have been a Star Wars augmented reality game for Disney. The market and society is ready for this kind of technology... Artificial reality is not a new technology; neither is the geo-tracking which Pokémon GO utilizes. However, this is the first app to bring all this together, with a strong existing brand and deliver it in a way that users can access, with ease... Pokémon GO has taken the world by storm by implementing technologies in a way people want to use, using content to provide a real use case.

Nintendo succeeded due to the strong market penetration of Pokémon. However, the content that companies such as Sony and Microsoft can bring to augmented reality vastly outweighs what Nintendo has. Companies will challenge Nintendo for its initial market position as they enter the AR market. They have the capability to create a more sustainable ecosystem than Nintendo.

The key challenge for Nintendo is to develop a strategy to ensure that someone else doesn’t reap all the rewards from travelling easier down the path they have just beaten. While Nintendo has grabbed this market and reaped the rewards in market capitalization I doubt they will hold their commanding position. To be blunt they need to have the guts, the leadership and the capability to do so; and there is no guarantee they do. The history of Nintendo as a company is grabbing first mover advantage, but being overtaken by competitors who take late-mover advantage, learning from Nintendo’s experiences and making it better.”

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