HomeTechnologyGamingNiantic Lays Off 230 Employees And Cancels NBA And Marvel Games

Niantic Lays Off 230 Employees And Cancels NBA And Marvel Games

After the revenue from the each level was observed, Niantic found out that some new projects did not generate the expected revenue.

Niantic Fires 230 Employees And Cancels NBA And Marvel Games
Pokemon Go’s Creator Niantic, Fires 230 Employees And Cancels NBA And Marvel Games

Niantic, the company behind the popular Pokémon GO game, has announced layoffs affecting 230 employees. As a result, the company has decided to cancel the development of NBA All-World and a Marvel-themed game.

Niantic’s CEO, John Hanke, explained in an email to employees that the company had expanded its workforce during the pandemic to pursue growth opportunities.

- Advertisement -

You May Also Like: Plex Reduces Its Workforce By 20% Due To Advertising Slowdown

However, with revenue returning to pre-pandemic levels, Niantic found that some new projects did not generate the expected revenue. One such project, Peridot, a mobile game similar to Tamagotchi, failed to meet financial expectations.

Despite its technological sophistication and unique breeding system, Peridot only earned $1.4 million in gross in-app purchase revenue since its launch in May.

- Advertisement -

Players were disappointed by certain paywall restrictions, such as having to pay for in-game items to hatch new Peridot pets and obtain specific fur patterns or styles.

While Pokémon GO remains Niantic’s most lucrative game, with over $1 billion in annual in-app purchases since 2020, players have voiced concerns about the company’s in-app purchase system.

Niantic faced backlash when it nearly doubled the price of remote raid passes, a popular in-app item. The company justified the increase by stating that remote play options contradicted their vision of encouraging outdoor, in-person gameplay.

- Advertisement -

However, some players boycotted Pokémon GO to protest the price hike, which likely affected Niantic’s in-app purchase sales. Sensor Tower data reveals that Niantic generated an average of $70 million in gross in-app purchase revenue per month between July 2022 and March 2023.

However, in the three months following the remote raid pass price increase, the company’s monthly revenue decreased to an average of $53 million.

CEO John Hanke emphasized that the primary focus is to ensure the long-term growth and success of Pokémon GO. Unfortunately, some Pokémon GO staff members were also impacted by the recent layoffs.

Despite the financial challenges faced by games like Peridot, Niantic has a separate business division dedicated to its developer tools.

The Lightship AR developer kit enables Unity users to create their own augmented reality (AR) games, with access to Niantic’s visual positioning system (VPS) for interacting with real-world landmarks.

You May Also Like: Amazon Preps To Lay Off Another 9,000 Employees In The Coming Weeks

Furthermore, Hanke expressed the company’s intention to enhance its efforts in building for mixed-reality devices and AR glasses.

Niantic believes that if they are unable to replicate the success of Pokémon GO with new games, their developer tools and focus on AR technology can help sustain the company’s growth.

- Advertisement -
Elize Coetzee for SurgeZirc SA
Elize Coetzee for SurgeZirc SAhttps://new.surgezirc.co.za
Elize Coetzee, a seasoned journalist, is the driving force behind SurgeZirc SA’s world news and world politics coverage. With an unwavering commitment to truth, Elize delves into global affairs, providing live updates, in-depth investigations, and thought-provoking analysis. Whether it’s geopolitical tensions, international diplomacy, or breaking stories, Elize’s incisive reporting keeps readers informed and engaged.
0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments
- Advertisment -

Just Dropped

Would love your thoughts, please comment.x