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A scale test

TPC year to February 2026 (Nintendo year to March 2026)

EstimateA scale test resting on accounting inference; indicative only.

What this is

A scale test: can the Pokémon group’s Niantic gain explain a ¥36.5bn one-off item in Nintendo’s accounts for The Pokémon Company? Only with a second gain outside the Tokyo company.

How it’s built

  1. Nintendo’s share of a reclassified item from The Pokémon Company was ¥11.7bn; at 32% that is ¥36.5bn after tax for the whole group.
  2. The Tokyo company’s ¥23.8bn gain after 30.7% tax is ¥16.5bn, only 45% of that.
  3. The other ¥20bn after tax must be a gain below the Tokyo company, such as at the US arm, or netted losses.

What we assumed

  • The ¥36.5bn is an after-tax figure.Japanese accounting standards present an affiliate’s share of such items after tax; if it were pre-tax, the missing piece shrinks to ¥12.7bn.
  • The item arose and was reclassified within the same year.The Tokyo company had only ¥178m of such reserves at February 2025, before the Niantic sale was announced.
  • The Tokyo company’s gain was taxed at its 30.7% average rate.Its rate has been steady; a separate test suggests the gain was taxed normally.

Sanity check

If true, the group’s Niantic gain was ¥49–53bn, 1.5–1.6 times Nintendo’s, or 9–10% of the $3.85bn payout. That would make the group a bigger Niantic holder than Nintendo.

Where it comes from

Our calculation from other figures in the trainer’s notes:

Show the working
  • Recycle 100pct after tax: 36,497
  • Securities arising 100: 38,588%
  • Net securities 100: 2,091%
  • Parent gain pretax: 23,809
  • Parent gain after tax: 16,500
  • Parent share of recycle: 45.2%
  1. 11,679/0.32 = 36,497
  2. 23,809×(1−0.307) = 16,500
  3. 36,497 − 16,500 = 19,997
  4. /0.79 = 25,313
  5. /0.6938 = 28,823

Related figures

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