The developers of Pokémon GO are taking a hard look at their situation. They are discontinuing two of their games and laying off a lot of people. We at MeinMMO will show you what exactly has happened and what Niantic’s new goals are.
What’s happening at Niantic? The game developer of Pokémon GO is apparently going through difficult times. They want to counter this and have had to make tough decisions. Not only are two of their games being discontinued, but a part of their employees will lose their jobs. And this is not the first time. In 2022, Niantic laid off 8% of its staff.
We have summarized for you below which games are affected, how Pokémon GO is doing, and why Niantic made these decisions.
Developer makes tough decisions for the future
Which games are involved? Just in January 2023, Niantic released the mobile game NBA All-World, which was primarily aimed at basketball fans. But that will also come to an end, as the developers announced in a comprehensive statement on the evening of June 29, 2023.
And the basketball game is not the only one. The development of the game Marvel: World of Heroes is also being discontinued, and 230 employees are being laid off. You can find an email from CEO John Hanke to his staff on the blog, in which he writes:
I want to share some news about the steps we are taking to prepare Niantic for the future. These represent some difficult changes for our organization, but I believe they are important if we want to face the current challenges in the market and seize the long-term opportunities that lie ahead.
I have made the decision to limit our investment focus in mobile games by concentrating on first-party games that best embody our core values such as location and local social communities. The mobile gaming market is very mature, and only the best and most differentiated titles have a chance of success. Additionally, we aim to focus more on developing products for the emerging class of MR devices and future AR glasses.
Specifically, this means that we will close our studio in LA, downsize our game platform team, and make further cuts across the company. As a result, we will discontinue NBA All-World and end production of Marvel: World of Heroes. This means that we will be laying off about 230 Niantics.
John Hanke via nianticlabs.com
Why is Niantic doing this? These drastic measures are necessary to prepare the company for the future, according to Hanke, who specifically mentions the significant increase in expenses compared to their revenues. They noted a rise in revenue during the pandemic, which led them to hire staff and push new games forward.
After the pandemic, revenues dropped again, and their new projects did not achieve the hoped-for successes. To ensure they can position themselves sustainably in the market, these steps were necessary. Niantic intends to pursue new strategies regarding AR systems and their games.
What does the future hold for Pokémon GO?
Pokémon GO is a top priority: Fans of Pokémon GO can breathe a sigh of relief, as the developer’s biggest game, which will turn 7 years old this year, is set to become the top priority. Accordingly, Niantic’s resources will be focused more heavily on the little pocket monsters, aiming to make it a forever
game.
Therefore, adjustments to the Pokémon GO team have also been made by Niantic, and it is planned to grow. Furthermore, the developer plans to invest further in this product. He writes:
The top priority is to keep Pokémon GO healthy and develop it as a forever game. While we have made some adjustments in the Pokémon GO team, our investments in the product and the team will continue to grow.
John Hanke via nianticlabs.com
What this means for the content in Pokémon remains unclear from Niantic’s communication and will thus be awaited for now.
Will other Niantic games remain? Other games, such as Pikmin Bloom, Peridot, and Monster Hunter Now, will continue to be developed. Hanke still sees potential here. So fans of these games can be pleased that they will remain. The AR sector will also continue to be a major theme for the developer.
What are your thoughts on the developer’s decisions? Do you think it is right for Niantic to part ways with some of its games? And what better content would you wish for the future of Pokémon GO? Feel free to let us know here at MeinMMO in the comments and discuss with other trainers.
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