Niantic Focuses on 'Pokémon Go' Amid Layoffs, Game Shutdows

Quincy Jon, Tech Times 29 June 2023, 03:06 pm

Niantic, the developer of the beloved smartphone game Pokémon Go, is undergoing many organizational changes, including firing employees, shutting down games, and closing its Los Angeles facility.

Niantic CEO John Hanke decided to send an email published on the company's website and explained the necessity to focus on its flagship title.

Despite being close to its 7th anniversary, Pokémon Go is still a top-rated and lucrative game, bringing in almost $1 billion annually, according to Sensor Tower statistics from June 2022. But Niantic failed to duplicate its success with other games, such as those based on Harry Potter and Catan, resulting in job losses and project cancellations.

In a round of layoffs last year, Niantic canceled four projects, including a Transformers game. NBA All-World will be deleted from the App Store after four months, and a Marvel-based game will be discontinued, per The Verge.

Hanke Explains Decision

Hanke said in his email that the firm had pursued aggressive expansion during the COVID-19 outbreak by increasing its employees and incurring significant costs. The new initiatives did not provide the anticipated financial returns, and income has stabilized at pre-pandemic levels.

The email also stated how Niantic's goals had been influenced by the augmented reality (AR) market's slower-than-projected development. The company's games are perfect for mobile augmented reality experiences, which are anticipated to become a reality with the release of smart glasses.

Most wearable augmented reality (AR) products today, like Apple's Vision Pro and Meta Quest Pro, are intended for usage in the home or workplace. The restructuring may be necessary since consumer-friendly AR versions compatible with Niantic's particular strategy may only be available for up to five to 10 years.

Moving Forward

Hanke stressed that Niantic aims to ensure that Pokémon Go continues flourishing and expanding as a "forever game." Other titles, such as Pikmin Bloom, Peridot, and Monster Hunter Now, will continue to be created and supported by the firm. Niantic will also keep making investments in its AR development tools, according to Engadget.

Pokémon Go became popular in the summer of 2016. During the pandemic, participants sought methods to leave their homes and played the game. Niantic's Pokémon Go social tool lets players organize and chat, increasing the game's involvement.

Niantic's latest smartphone game, Peridot, is based on Tamagotchi. Peridot was published in May and is Niantic's first original intellectual property (IP) since Ingress. Although market intelligence company Sensor Tower reports that just $1.4 million in gross in-app purchase income has been produced so far, the company's financial performance has been unimpressive.

Peridot provides gamers with a cutting-edge gaming experience, with a complex breeding mechanism that creates genetically unique creatures for each player, per TechCrunch. Players, however, voiced dissatisfaction when it first came out since some of its intriguing features were hidden behind paywalls. For instance, purchasing a $5 in-game item is necessary to get a new Peridot pet.

In addition, gamers quickly learn that further expenditures are required to acquire specific exclusive fur patterns or styles for their recently born pets.