Niantic, the creator of the popular mobile game Pokémon GO, has announced the layoff of 230 employees, just one year after letting go of around 90 employees. This decision comes as Niantic cancels some of its projects, similar to last year when four projects, including a Transformers game, were scrapped. This time, the company is shutting down NBA All-World after four months in the App Store and canceling the production of a game based on the Marvel franchise.

CEO John Hanke explained in an email to employees, which was also posted on the company blog, that the layoffs were necessary because the company had overhired during the pandemic in pursuit of aggressive growth. With revenue returning to pre-pandemic levels, Niantic found that new projects did not generate the expected revenue.

One of these new projects, Peridot, a Tamagotchi-like mobile game and Niantic’s first original IP since Ingress, launched in May but has only made $1.4 million in gross in-app purchase revenue so far, according to Sensor Tower. While Peridot offers technologically sophisticated features, such as a breeding system that creates genetically unique pets, players were disappointed with the paywalling of exciting features. The game requires in-app purchases, such as a $5 fee to hatch a new Peridot and additional payments for unique fur patterns or styles.

Although Pokémon GO remains a financial success for Niantic, surpassing $1 billion in in-app purchases annually since 2020, players have expressed dissatisfaction with the game’s in-app purchase system. Niantic’s decision to nearly double the price of remote raid passes, a popular in-app item, in March faced backlash from players who felt the company was deviating from its vision of encouraging outdoor, in-person gameplay. While their protests may not have caught Niantic’s attention, the company’s in-app purchase sales have seen a decline since the price increase.

Despite the challenges faced by Niantic’s game projects, the company has a separate business arm focused on developer tools. Niantic’s Lightship AR developer kit allows developers familiar with Unity to create augmented reality (AR) games, with access to the company’s visual positioning system (VPS). Hanke mentioned in his note to employees that Niantic aims to prioritize building for mixed-reality devices and AR glasses. This focus on developer tools could help sustain the company even if its own game projects face difficulties.

Niantic, the creator of the popular mobile game Pokémon GO, has announced the layoff of 230 employees, just one year after letting go of around 90 employees. This decision comes as Niantic cancels some of its projects, similar to last year when four projects, including a Transformers game, were scrapped. This time, the company is shutting down NBA All-World after four months in the App Store and canceling the production of a game based on the Marvel franchise.

CEO John Hanke explained in an email to employees, which was also posted on the company blog, that the layoffs were necessary because the company had overhired during the pandemic in pursuit of aggressive growth. With revenue returning to pre-pandemic levels, Niantic found that new projects did not generate the expected revenue.

One of these new projects, Peridot, a Tamagotchi-like mobile game and Niantic’s first original IP since Ingress, launched in May but has only made $1.4 million in gross in-app purchase revenue so far, according to Sensor Tower. While Peridot offers technologically sophisticated features, such as a breeding system that creates genetically unique pets, players were disappointed with the paywalling of exciting features. The game requires in-app purchases, such as a $5 fee to hatch a new Peridot and additional payments for unique fur patterns or styles.

Although Pokémon GO remains a financial success for Niantic, surpassing $1 billion in in-app purchases annually since 2020, players have expressed dissatisfaction with the game’s in-app purchase system. Niantic’s decision to nearly double the price of remote raid passes, a popular in-app item, in March faced backlash from players who felt the company was deviating from its vision of encouraging outdoor, in-person gameplay. While their protests may not have caught Niantic’s attention, the company’s in-app purchase sales have seen a decline since the price increase.

Despite the challenges faced by Niantic’s game projects, the company has a separate business arm focused on developer tools. Niantic’s Lightship AR developer kit allows developers familiar with Unity to create augmented reality (AR) games, with access to the company’s visual positioning system (VPS). Hanke mentioned in his note to employees that Niantic aims to prioritize building for mixed-reality devices and AR glasses. This focus on developer tools could help sustain the company even if its own game projects face difficulties.