Monster hit: Pokemon Go phenomenon astonishes gaming industry, boosting Nintendo by US$7bn

Game developers around the world have watched in astonishment since the weekend as Pokemon Go, a mobile version of the beloved 1990s game from Nintendo Co, became an instant hit - rocketing to the most downloaded app on both Apple and Android phones.

The maker of Super Mario and Zelda games has added more than US$7 billion in market value since Friday’s debut of the new smartphone app for its fantasy monster character franchise. The game was poised to surpass Twitter in daily active users on Android, according to data published by SimilarWeb, an information technology firm. And on the Google Play store, it’s ranked No 1 above Facebook, Snapchat and Instagram.

It’s too soon to say if its success will reshape the US$25 billion mobile gaming industry, but this much is certain: the surprise hit will inspire copycats.

“You’re going to see other developers potentially changing their pipeline to incorporate augmented reality or location-based technology,” said Mike Olson, an analyst at Piper Jaffray Cos. “Those plans are probably being put in place right now.” He said he wouldn’t be surprised if Activision Blizzard Inc. added such functionality to its Skylanders game, a role-playing game featuring toys.

Much will depend on whether Pokemon Go’s success endures and whether rival game makers can duplicate the underlying technology. Pokemon Go brings together two key features: the location-mapping common to many apps, and augmented reality, or AR, which overlays a virtual world on the real one. After downloading the app, players wander around the real world, navigating via an animated version of Google Maps, searching for Pokemon characters to capture and add to their team.

The technology comes from Niantic Inc, a company founded by Google and spun off last year. In 2013, Niantic created Ingress, in which opposing teams capture “portals” based on real-world landmarks.