Niantic, the AR studio known for Pokémon Go, laid off over 200 employees and shut down its Los Angeles studio to ensure financial stability, WSJ reported. CEO John Hanke explained that the company's expenses have outpaced its revenue, and new projects have not generated enough income. Unsuccessful AR apps, including Harry Potter: Wizards Unite and Catan AR, have contributed to the financial challenges. - The company will sunset its game "NBA All-World" and stop production of "Marvel: World of Heroes."
- The layoffs result from the company's need to align expenses with revenue growth.
- The restructuring aims to align expenses and revenue while preserving the company's core assets.
- Niantic's revenue returned to pre-COVID-19 levels, but new projects did not generate sufficient revenue.
- Niantic has faced skepticism about the metaverse concept and has advocated for integrating the digital world with the real world through AR.
Last year, Niantic shut down four projects and laid off 8% of its employees. - "Pokémon Go" was one of the first video games to use augmented reality.
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