Why Nintendo's Pokémon Go success represents the crux of Japan's corporate reform woes

Chris Smith, analyst - Japanese equities at Polar Capital, discusses the evolution of the Japanese market and the search for income.

In the past two weeks, we have seen the world glued to their phones as they search the streets around them for Pokémon. The phenomenal success of Pokémon Go has seen Nintendo's market value more than double since the end of June. Perhaps, just as phenomenal, is the fact this is the first time Nintendo have embraced the mobile gaming market, having shunned years of shareholder advice. In any other developed country, it is likely that management would have been held accountable for a decade of failure. But Nintendo's situation represents the crux of Japan's problems. Historically,...