Logging in via the Pokemon Trainer Club account option is also supposed to be a more stable process with the update.
Shares in Nintendo fell almost 6 percent in Tokyo early on Wednesday after a three-day surge on the successful USA launch of the augmented reality game last week added 1.2 trillion yen ($11 billion) to the company's market value.
The company, spun off by Google previous year, created the game in tandem with Pokemon Co, a third of which is owned by Nintendo.
"Investors have big expectations that Pokemon Go will open a new chapter in Nintendo's future growth", said Takashi Oba, a senior strategist at Okasan Securities in Tokyo. It has been downloaded millions of times - sending Nintendo's stock skyrocketing.
Pokemon Go uses smartphone satellite location, graphics and camera capabilities to overlay cartoon monsters on real world settings, challenging players to capture and train the creatures for battles. It is very tempting to always look out for Pokemon along the road.
With great success comes great responsibilities. However severe the drop off, it's safe to say that the game company has already made a killing on the app.
This led people to request the makers of "Pokemon Go", Niantic, to come up with a new version soon. After its launch in Australia, New Zealand and the USA on July 6, Niantic, the game's Australia-based developer, paused the global launch due to overwhelming demand.
Unfortunately, this acquirement of "Pokemon GO" has taken its toll. It is just the first week.
Pokemon is a Nintendo franchise that launched in the 1990s. The Pokemon Go 1.0.1 update brings several stability fixes, including the issue where players had to repeatedly log in with their usernames and passwords when the app forcibly logged them out. Trainers can by PokeBalls and other enhancements.