Niantic hits big with Pokémon GO and rapidly expanding to many other augmented reality-based mobile experiences. Unfortunately, post-pandemic, it’s currently going through a rough patch – with an update on the company’s website and employee email revealing that Niantic is canceling two games and laying off 230 staff as part of the LA studio closure.
Niantic CEO John Hanke has told employees and fans the company has decided to “narrow” its focus on a number of mobile gaming investments. NBA around the world will be sunset and production on Marvel: World of Heroes will stop.
“We have allowed costs to grow faster than revenue. In light of the increase in revenue we’ve seen during the Covid era, we’ve increased our headcount and associated costs in pursuit of stronger growth, expanding our existing gaming teams, operating AR platform, new game projects, and roles that support our products and employees. Post-Covid, our revenue has returned to pre-Covid levels, and new games and platform projects have not yet yielded the revenue commensurate with those investments. This change will bring costs and revenue back in line while preserving our core assets and long-term growth.”
Fortunately, Pokémon GO remains Niantic’s “top priority”, with development clearly “as a forever game”. Some other good news for Nintendo fans is that Niantic still seems committed Pikmin flower. Another project it will also stick to is Monster Hunter nowbased on the popular Capcom IP.
While Pokémon GO is in good financial shape, the gaming community has expressed disappointment in recent months after Niantic made some adjustments to its Remote Raid Passes – increasing the price and also limiting the number of calls. raids that players can participate in every day.
