Pokémon Go a “top priority” for Niantic as it cancels two games and lays off staff
It’s bad news all around
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Niantic has confirmed it’ll be strongly focusing onPokémon Goand other unreleased projects going forward, at the cost of two games being canceled and swathes of layoffs.
Pokémon Go, is largely considered to be one of thebest mobile games, and holds pride of place as Niantic’s top earner. In order to strengthen its focus onPokémon Go, Niantic CEO John Hankeconfirmed in an email to employeesthat the company will be closing its LA-based studio.
“As a result, we will be sunsettingNBA All-Worldand stopping production onMarvel: World of Heroes,“writes Hanke. “This means we are laying off around 230 Niantics.”
The reason for this, Hanke cites, is that the company “allowed our expenses to grow faster than revenue. In the wake of the revenue surge we saw during Covid, we grew our headcount and related expenses in order to pursue growth more aggressively, expanding existing game teams, our AR platform work, new game projects, and roles that support our products and our employees.”
To combat this, Niantic is looking to scale back and focus on a few core projects.Pokémon Gois chief among them, but also the recently releasedPikmin Bloomand the upcomingMonster Hunter Nowwhich is launching this September. In short, it means that Niantic has seen fit to lay off 230 staff members, shut down the popularNBA All-World,and cancelMarvel: World of Heroesbefore it ever released.
Hanke’s statement on the Covid-19 pandemic is backed up by data. According toStatista,Pokémon Goearned just over $900 million in revenue in 2020. There was a slight drop-off in 2021, with the mobile title earning $874 million. In 2022, we see a substantial fall to $645 million.
With that in mind, it’s understandable that Niantic would want to refocus its resources on increasing revenue for its most well-known game. But, it’s nonetheless frustrating and disheartening that the decision has come at a steep cost of layoffs and cancellations.
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The Niantic layoffs aren’t the only piece of bad news circling the industry of late. Meanwhile,Ubisoft has confirmed it’s developing a play-to-earn gameon the popular Oasys blockchain.
Rhys is TRG’s Hardware Editor, and has been part of the TechRadar team for more than two years. Particularly passionate about high-quality third-party controllers and headsets, as well as the latest and greatest in fight sticks and VR, Rhys strives to provide easy-to-read, informative coverage on gaming hardware of all kinds. As for the games themselves, Rhys is especially keen on fighting and racing games, as well as soulslikes and RPGs.
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