Niantic, the studio behind Pokémon Go, has announced a series of cutbacks — including layoffs for 230 staff, the cancellation of an upcoming Marvel game, and the closure of its Los Angeles studio.
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In an email sent to Niantic staff and later made public, Niantic CEO John Hanke confirmed that the company has “allowed our expenses to grow faster than revenue,” while recent games have not “delivered revenues” that match their investment.
As a result, Hanke shared that Niantic will be closing its studio in LA, cancelling its upcoming game Marvel World Of Heroes, and shutting down NBA All-World — which only launched in January.
In total, these changes will see “around 230” layoffs for workers. The company will also pivot to releasing fewer games with higher quality, along with a “more direct and results-based culture”.
Explaining the cuts, Hanke pointed to a “tough market environment due to the overall global macroeconomic slowdown, as well as unique challenges in the mobile gaming and AR markets”.
