Opinion: Niantic is downsizing with 230 job cuts

Niantic’s Tough Decision

Niantic recently made the tough decision to lay off 230 employees, shut down its Los Angeles studio, and cancel two licensed games. However, fans of Pokémon Go can breathe a sigh of relief as the flagship product will continue to thrive. CEO John Hanke explained that the company is narrowing its focus on mobile game investments and shifting towards building for the emerging class of MR devices and future AR glasses.

Challenges and Mistakes

Hanke’s letter to employees was candid about the challenges Niantic faced, attributing the downsizing to growing expenses faster than revenue. Despite the setbacks, the CEO remains committed to keeping Pokémon Go healthy and growing. The AR market developing slower than anticipated also played a role in the company’s decisions, as consumer-friendly versions of augmented reality are still a few years away.

Looking to the Future

While Niantic may have to wait for the ideal AR technology to catch up with its vision, the company is determined to continue innovating and providing engaging experiences for players. With a renewed focus on its core values of location and local social communities, Niantic is poised to adapt and thrive in the evolving mobile gaming industry.