In a significant strategic move, Niantic, the renowned augmented reality (AR) gaming company, has announced a series of organisational changes, including employee layoffs, game closures, and the shutdown of its Los Angeles studio.
Why ‘Pokémon Go’ is Niantic’s best bet in spearheading AR gaming
These actions, detailed in an official email by Niantic CEO John Hanke, aim to streamline the company’s focus and reinforce its commitment to its flagship game, Pokémon Go, per The Verge.
Despite approaching its seventh anniversary, Pokémon Go continues to maintain remarkable relevance in the gaming industry.
Recent data from Sensor Tower, a leading mobile app intelligence firm, revealed that the game has consistently generated approximately $1 billion in annual revenue.
However, Niantic’s attempts to replicate this unprecedented success with other titles, such as games based on Harry Potter, Catan, and four other franchises, faced closure, leading to job losses in the previous year.
It’s worth noting that other companies have encountered similar challenges in the genre, as exemplified by Microsoft’s closure of Minecraft Earth and CD Projekt Red‘s impending shutdown of their AR game in The Witcher series.
As part of the current round of layoffs, Niantic is expected to let go of around 230 employees.
Additionally, the company plans to discontinue their NBA game, NBA All World, and halt production on their Marvel game, Marvel World of Heroes.
These measures demonstrate Niantic’s commitment to focus its resources on its core objectives, specifically the long-term success and growth of Pokémon Go.
Despite the closures and layoffs, Niantic remains steadfast in its belief that augmented reality represents the future of computing.
CEO John Hanke emphasized the company’s dedication to exploring new technological advancements, including mixed reality devices like the Meta Quest Pro and Apple Vision Pro.
These devices are seen as intermediate steps towards the development of true outdoor AR devices.