A Big Shake-Up at Niantic
Niantic had been doing a lot over the past three years. But now, it’s making big changes. The company plans to cut hundreds of jobs, shut down games, and close a studio. Its new aim is to do fewer things but to do them better. The main focus is on keeping Pokémon Go strong and growing.
Changes and Closures
Today, Niantic’s boss, John Hanke, announced that 230 people will lose their jobs. The company’s Los Angeles studio will close. Games like NBA All-World will stop, just six months after its big launch. They also scrapped the planned Marvel: World of Heroes game.
This isn’t the first time Niantic has stopped supporting games quickly. But this time, it’s a bigger deal. After a very successful 2020, Niantic took on too much. Now, it needs to focus more narrowly in a tough mobile games market.
Getting Back to Basics
“In the wake of the revenue surge we saw during Covid, we grew our team and expenses,” Hanke said. After Covid, their income went back to normal. New games and projects didn’t bring in enough money. So, they’re making changes to balance expenses with income. They want to keep their main games and long-term plans strong.
Even big names like NBA and Marvel couldn’t make some of Niantic’s AR titles hit off. So, they’re cutting those games. Now, Niantic wants to focus on making a few games do well. It looks at user retention, revenue, and profitability. Their top goal is to keep Pokémon Go growing as a “forever game.”
A Tough Path Ahead
This focused plan should improve Pokémon Go, especially with Pokémon Go Fest 2023 coming up. But many players are unhappy with some of the company’s recent decisions. Trust is low, and Niantic has a lot of work to rebuild it. Fans are particularly upset about changes to Remote Raids and feel the company isn’t listening.
For now, games like Pikmin Bloom, Peridot, and Monster Hunter Now are still getting full support. But Niantic admits there’s much to do to make these games last. They’re now aiming for a direct and results-driven culture. They hope this will make things better for players.
Niantic’s shake-up is a big move towards focusing on what works and cutting what doesn’t. Only time will tell how these changes will affect its games and its relationship with players.