Pokémon Go Developer Shuts Down a Studio in Los Angeles

Niantic, San Francisco-based game developer best known for its AR hit Pokemon GO revealed that it will undergo some organizational changes to stabilize the company's financial position. 

According to an email from Niantic CEO John Hanke, the company is closing its Los Angeles studio and will halt production of its Marvel: World of Heroes game and cancel NBA All-World which generated only 354,000 downloads during its first week based on data from Data.ai. 

According to John Hanke, Niantic will concentrate on first-party games in the mobile gaming industry. He says, "The mobile gaming market is very mature and only the best and most differentiated titles have a chance to succeed. We also want to increase our focus on building for the emerging class of MR devices and future AR glasses."

The CEO continues by announcing that the LA studio is closing and that 230 Niantic workers will be laid off. Hanke claims that the reason for these adjustments is that the company's costs are increasing more quickly than its revenue. 

Despite the changes, Niantic will continue to support Pokémon Go and Monster Hunter Now as well as Pikmin Bloom, Peridot, and Ingress. Currently, Pokémon GO has over 79 million monthly gamers. The game made $703 million last year, which is less than the figure published in 2021.

Find out more here and don't forget to join our 80 Level Talent platform and our Telegram channel, follow us on Instagram and Twitter, where we share breakdowns, the latest news, awesome artworks, and more.