Niantic, the developer of Niantic partnered with Nintendo last year to bring several new games to mobile, following the widespread success of Pokémon GO.
Niantic has not had the best track record as of late. There have been many conflicts with Pokémon GO players over game mechanics, most notably the rolling back of quality of life improvements introduced in response to the Covid-19 pandemic and the resulting global lockdowns. The nerfing of Incense and shrinking of event day lengths have also been met with backlash from some fans. Despite the continuing general popularity of Pokémon GO, it has been argued that Niantic has dropped the ball on many occasions when it comes to managing the game. The developer recently issued an apology to Pokémon GO players for technical problems interfering with a special Kyogre raid, which was not the first time that a problem like this had occurred either.
Sadly, it now also seems that Niantic's struggles are getting worse. basketball-themed NBA All-World, another Pokémon GO-style AR title from Niantic.
To make matters worse, the company has also announced that it will be cutting around 8% of its current employees. Bloomberg News reports that Niantic CEO John Hanke described the company as facing financial difficulties in a recent email to staff regarding the cuts. Although the report doesn't go into specifics, other titles like Harry Potter: Wizards Unite and Pikmin Bloom have so far failed to gain substantial audiences, and could be partially responsible for Niantic's ongoing difficulties. Nevertheless, NBA All-World is reportedly unaffected by the changes at this time, and Niantic is of course continuing the development of Pokémon GO. New anti-cheat measures for Pokémon GO were recently outlined - for example, promising more effective detection and punishment for those who break the of service.
News of Niantic's financial troubles may highlight an unfortunate aspect behind the company's growth. Despite the incredible success achieved by Pokémon GO, none of the developer's follow-up titles have been able to enjoy the same level of popularity. Although Niantic has attempted to apply its formula to many different properties, including with Transformers: Heavy Metal, Pokémon GO seems to be shaping up to be a one-hit-wonder, and one that may also be losing its luster for many fans. The recent announcement that the long-awaited new Ultra Beasts Peromosa, Buzzwole, and Xurkitree would be locked to Pokémon GO's in-person events is the latest in a long line of controversial decisions, and in the wake of these cancellations, it would be fair to say that change is needed.
Source: Bloomberg
