Pokemon Go developer Niantic lays off 230 employees

The chief executive also noted that these changes are intended to keep the focus on its most successful video game, Pokémon Go, which generated $1 billion in revenue a year, according to SensorTower data.

This is not the first time that Niantic has made a decision of this nature, since last year it canceled four titles and also laid off 80 workers, so the success beyond Pokémon Go has not been replicated.

“The main priority is to keep Pokémon Go healthy and growing as an eternal game,” Hanke commented, since it is the platform that generates the most income both within the game and from face-to-face events in different cities around the world.

Niantic’s first major project to fail was Harry Potter, Wizards Unite, which closed in January 2022; however, this dynamic is something that has been replicated by other companies that have failed to exploit the AR terrain successfully.

Microsoft shut down its Minecraft title in this genre, while CD Projekt Red, the studio behind Cyberpunk 2077, will shut down its version of The Witcher in AR on June 30.

Alan Mandujano, head of Niantic for Latin America, told Expansión that despite the stoppage in the development of video games, they try to continue innovating through new franchises.

“If you don’t try new things or experiment, you never learn and in that sense Harry Potter: Wizards Unite was a success for us. And although it is no longer in development, we are proud of it and highly value the lessons it left us, which we continue to use in our products,” he commented.

On the other hand, Hanke noted in the statement that despite the game closures, they are “long-term believers in AR as the future factor for computing.”

He also made reference to the fact that they are analyzing the new devices in the Mixed Reality industry, such as the Quest Pro and the Apple Vision Pro, which, he said, will be the true springboard to connect the physical and virtual world.