The gaming community was abuzz after the release of the location-based augmented reality mobile game Pokémon GO in July this year. However, market observers have revealed that the craze for the game is fading off.

Pokémon GO went to the top of app lists soon after it was launched. App intelligence firm Sensor Tower reported that Pokémon GO topped 50 million downloads on the Google Play Store within record time. The firm also confirmed that a total number of downloads for Pokémon GO on both Android and iOS reached 75 million within 19 days.

The mobile game's revenue also crossed $200 million just within the first month of its launch, which reflected the huge worldwide success of the game. Pokémon GO's increased popularity is said to have affected the time spent on mobile apps from bigwigs such as Facebook, Twitter, Instagram and more.

"Given the rapid rise in usage of the Pokémon GO app since the launch in July, investors have been concerned that this new user experience has been detracting from time spent on other mobile focused apps," says Victor Anthony, a senior analyst with Axiom Capital Management.

Although the interest in the game is still high, however, the number of daily active users has started to decline. Reports say that at the highest point, Pokémon GO boasted more than 40 million daily active users, but it is now decreasing.

According to a Bloomberg report, various app intelligence companies such as Sensor Tower, Apptopia and SurveyMonkey suggest that not only is the number of daily active users on a downward trend, but also the time spent and engagement with the game.

Virtual and reality games are also gaining a lot of popularity in the gaming community, and Anthony believes that a decline in Pokémon GO's daily active users will not only have an impact on the game alone but may reduce the overall popularity of augmented reality games.

Reports suggest that Pokémon GO is no longer among the top 10 free apps downloaded in the U.S. However, the reason could be that whoever wanted the game now already has the app. The popularity of the game may have reduced in the U.S., but it is still the top mobile game in some countries such as Singapore.

Market experts believe that Niantic Labs will have to attract gamers' attention by introducing new features such as an improved tracking system, Pokémon trading and player-to-player battling.

Only time will tell if Niantic will bring more features to Pokémon GO in a bid to keep players' interest in the game intact.

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