Niantic, the company behind the wildly popular augmented reality game Pokémon GO, recently announced some major changes. In an update on their company website and in an email to employees, Niantic revealed that it will be axing two games and laying off 230 employees as part of the closure of its LA studio.
According to Niantic CEO John Hanke, the company has made the decision to “narrow” its focus on certain mobile game investments. As a result, the games NBA All-World and Marvel: World of Heroes will be discontinued. This move is a result of the company’s expenses growing faster than revenue, especially after the surge in revenue during the Covid-19 pandemic. Despite growing its headcount and expanding into new projects, Niantic has not seen the expected revenues from these investments. The closure of the LA studio and the reduction in employees is a step towards aligning expenses and revenue.
However, fans of Pokémon GO can breathe a sigh of relief as Hanke assured that the game remains the company’s “top priority” and will continue to receive support and updates. Niantic is also committed to Pikmin Bloom, another game in collaboration with Nintendo. Additionally, the company will continue working on Monster Hunter Now, a game based on the popular Capcom IP.
While Pokémon GO is financially stable, there have been some recent frustrations among the game’s community. Niantic made adjustments to Remote Raid Passes, increasing prices and limiting the number of raids players can participate in per day. These changes have prompted backlash from players.
It remains to be seen how these changes will affect Niantic’s future projects and the overall experience for players. However, the company remains optimistic about the potential for growth and success in the long term.
It is worth noting that Niantic’s decision to focus on its core assets and streamline its operations is a common practice in the gaming industry. Companies regularly evaluate their portfolios and make adjustments to ensure sustainable growth and profitability. As Niantic continues to navigate these changes, fans and players will eagerly await news of any further developments.