Nintendo stock takes a nosedive

Nintendo said its affiliate Pokémon Co receives licensing and fees from the game's developer, Niantic Inc, and that profits at Nintendo from those revenues would be limited.

Nintendo created the Pokemon franchise but the rights to the characters are held by The Pokemon Company. The next major launch for Pokemon go will be in China. They would probably have fallen more but hit the daily trading limit.

Nintendo's US shares fell 11.6% to 25.65 on the stock market today.

Whilst it appears to have taken investors by surprise, some analysts are saying the market has "overreacted" to the Nintendo statement.

Since the launch of "Pokemon Go", Nintendo's market share went skyrocketing alongside the global phenomen the GPS-based game was able to produce.

Bloomberg reported that the stock has experienced a rough setback of 18 percent close in Tokyo with just 23,220 yen.

The value of video game maker Nintendo, which had risen $17.6 billion since the release of Pokemon Go, gave back $6.7 billion in valuation on Monday.

However the big drop was not enough to negate the market gains the company has enjoyed since the release of Pokemon Go.

The company further said they will not be making any modifications to their financial forecast as of the moment and will inform public once they do so.

Nintendo is expected to report first-quarter earnings on Wednesday. "Because of this accounting scheme", Nintendo explained, "the income reflected on the Company's consolidated business results is limited".

A woman plays the augmented reality mobile game "Pokemon Go" by Nintendo, as a visitor uses an automated teller machine (ATM) at a branch of Sberbank in central Krasnoyarsk, Siberia, Russia, July 20, 2016.

Nintendo stocks plummet - Pokemon GO isn't making enough money
Led airstrikes in Syria kill civilians, groups say