Pokémon Go Developer Announces Layoffs of 230 Employees and Cancellation of Upcoming Marvel Game

Pokémon Go will remain one of Niantic's top priorities moving forward

the pokemon company

Niantic, the company behind Pokémon Go, has announced the closure of its Los Angeles studio and a strategic shift away from in-house game development. As a result, the Pokémon Go studio will be laying off 230 employees, discontinuing NBA All-World, and canceling its upcoming Marvel: World of Heroes project.

In an internal email obtained by Kotaku, company founder John Hanke cited financial considerations as the primary reason for this decision. While the studio experienced significant revenue growth during the COVID-19 pandemic, it has faced a decline in revenue over time. Hanke also noted that the augmented reality (AR) game market has become increasingly competitive since the launch of Pokémon Go in 2016. Additionally, the company acknowledged a lack of sustained engagement for its various projects, falling short of internal goals.

Hanke acknowledged the company's responsibility for its performance, emphasizing the need for exceptional quality, innovation, strong monetization, and a social core in today's highly competitive mobile gaming market. He highlighted the importance of platform tools that empower development teams to create high-quality experiences with engaging features efficiently. The company admitted that it has not met its objectives in these areas.

Despite these changes, Pokémon Go will remain a top priority for Niantic, with a commitment to nurturing its long-term growth as a "forever game." Ongoing development will continue for recently-launched titles like Pikmin Bloom, Peridot, and Monster Hunter Now, although Hanke acknowledged the need for substantial efforts to ensure user retention, revenue, and profitability. Niantic also intends to invest in AR maps and platforms to support external developers in creating and monetizing their own AR experiences, while reducing internal project commitments.