Niantic Closes Los Angeles Office with Layoffs and Project Cancellations
Niantic, the renowned developer behind popular mobile games like Pokémon Go and Pikmin Bloom, is undergoing significant changes. The company has announced the closure of its Los Angeles office, the discontinuation of NBA All-World, the cancellation of an upcoming Marvel project, and the unfortunate layoff of approximately 230 employees.
In an official email sent to employees, as first reported by Kotaku, Niantic CEO John Hanke explained that the decision was made to narrow the company’s focus on mobile game investments.
“The mobile gaming market is highly competitive, and only the best and most unique titles have a real chance of succeeding,” stated Hanke.
Niantic is specifically closing its LA studio and downsizing its game platform team, resulting in the unfortunate layoff of “around 230” employees. NBA All-World will be discontinued, and production will halt on Marvel: World of Heroes.
This sudden and drastic shift prompted questions concerning the reasons behind these changes. Hanke straightforwardly explained that Niantic allowed expenses to outpace revenues.
“Following the revenue surge we experienced during the Covid pandemic, we expanded our workforce and related expenses to pursue aggressive growth, including expanding existing game teams, advancing our AR platform, initiating new game projects, and creating roles to support our products and employees,” elaborated Hanke. “However, post-Covid, our revenues returned to pre-pandemic levels, and the new projects in games and platform did not generate the expected revenue. This restructuring will align our expenses and revenue while preserving our core assets and long-term potential for growth.”
Embracing the Future
Looking ahead, Hanke emphasized that Niantic remains committed to augmented reality. Pokémon Go will continue as a “forever game” and retain its top priority status. Hanke also expressed confidence in the prospects of Pikmin Bloom, Peridot, and Monster Hunter Now.
The reduction in the platform team is part of Niantic’s strategy to “do less, but better.” Nevertheless, it is indeed a challenging day for the talented developers at Niantic who bring these augmented reality experiences to life.
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Eugen Boglaru is an AI aficionado covering the fascinating and rapidly advancing field of Artificial Intelligence. From machine learning breakthroughs to ethical considerations, Eugen provides readers with a deep dive into the world of AI, demystifying complex concepts and exploring the transformative impact of intelligent technologies.
