Niantic’sPokemon GOwas one of the biggest mobile hits of all time, and the San Francisco-based developer never quite managed to replicate its overwhelming 2016 success. Still, from the outside, it might have appeared that everything was going fine. The studioannounced the upcomingNBA All-Worldonly yesterday, and the monster-breeding AR gamePeridotstill seems set for release later this year.
However, the studio doesn’t seem to be doing too well behind the scenes. WhilePeridotandNBA All-Worldstill appear to be on the table, the company has reportedly found itself in severe financial peril. In response,Nianticis canceling several products and laying off almost 100 employees.
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Niantic CEO John Hanke recently told Bloomberg that the studio was “facing a time of economic turmoil” and had “begun reducing costs in a variety of areas.” This includes laying off between 85 and 90 staff members and canceling the development of four ongoing game projects. One of the canceled titles is aTransformersgame calledHeavy Metal. Another isHamlet, which Niantic developed in partnership with the theater group Punchdrunk Entertainment. According to Punchdrunk’s website, it was to be the first of several AR projects to let people everywhere experience Punchdrunk’s unique approach to immersive performances. The other two canceled projects areBlue SkyandSnowball, though information about them is limited.
Niantic’s financial woes might seem strange considering thecontinued popularity ofPokemon GO. Bloomberg’s article cites a report from analytics platform Sensor Tower indicating the game’s pulled in a total of $6 billion over its lifetime. That putsPokemon GOin an exclusive club of mobile titles, includingPUBG Mobile,Honor of Kings,Candy Crush Saga, andClash of Clans. It routinely pulls in $1 billion annually and is the highest-grossing location-based AR game by a wide margin. Runner-upDragon Quest Walkpulled in about $90 million in the first quarter of 2022, compared toPokemon GO’s $198 million.
However,Niantic’s other projects haven’t been nearly as successful. The studio’s next two games,Harry Potter: Wizards UniteandCatan: World Explorers,shut down due to a lack of players. Meanwhile, the above-mentionedTransformers: Heavy Metalwas years behind schedule.2021’sPikmin Bloomis the most successful Niantic game afterPokemon GObut hasn’t come close to matching the older game’s audience.
Fortunately,Pokemon GOfans don’t have to worry about their favorite game shutting down any time soon. A Niantic spokesperson told Bloomberg thatPokemon GOandNBA All-Worldare still under active development along with other games. That presumably includesNiantic’s upcoming AR creature breeding gamePeridot. If those games succeed,Nianticmay be able to shake its status as a one-hit-wonder. However, the studio’s recent history makes that a big “if.”
