Niantic, the company responsible for the popular mobile game Pokemon Go, has made the decision to close its Los Angeles studio and cancel two upcoming games. This move comes as Niantic grapples with the challenge of replicating the success of Pokemon Go with its new projects.
CEO John Hanke addressed the company’s employees via email, acknowledging that expenses had grown faster than revenue and that the new game and platform ventures did not generate expected profits. The restructuring aims to align expenses and revenue while safeguarding the company’s core assets.
The two games that were canceled are NBA All-World and Marvel: World of Heroes. NBA All-World was an augmented reality game allowing players to collect and battle real-world NBA players, while Marvel: World of Heroes was a game based on the Marvel Comics universe.
These layoffs are a significant setback for Niantic, previously regarded as one of the most successful mobile game companies worldwide. Pokemon Go was a global phenomenon, amassing over $5 billion in revenue. However, the company has struggled to replicate that success with its other major releases, Ingress and Pikmin Bloom.
The layoffs serve as an indication that Niantic is currently facing formidable challenges. The company must discover ways to generate more revenue from its new games to avoid potential financial difficulties.
