Niantic Restructures And Cancels NBA And Marvel Games
In the ever-evolving landscape of the gaming industry, Niantic, the renowned studio behind Pokemon Go, has recently undergone a significant restructuring process. This decision has led to the closure of their Los Angeles studio and the subsequent loss of 230 jobs.
Furthermore, the development of two highly anticipated games, NBA All-World and Marvel: World of Heroes, has been abruptly canceled. The restructuring was primarily driven by Niantic’s financial concerns, as their expenses were outpacing their revenue, and the anticipated earnings from new projects failed to materialize.
As a result, the company has chosen to refocus its efforts on augmented reality gaming, with a smaller portfolio of games moving forward. While games like Pokemon Go and Pikmin Bloom will continue to be developed, the closure dates for NBA All-World and Marvel: World of Heroes have yet to be announced.
Key Takeaways
- Niantic has undergone a significant restructuring process, resulting in the closure of their Los Angeles studio and the loss of 230 jobs.
- Two highly anticipated games, NBA All-World and Marvel: World of Heroes, have been canceled.
- The restructuring was driven by Niantic’s financial concerns, as their expenses were outpacing their revenue and anticipated earnings from new projects failed to materialize.
- Niantic will now focus on augmented reality gaming with a smaller portfolio of games, including Pokemon Go, Pikmin Bloom, Peridot, and Monster Hunter Now.
Changes at Niantic
Niantic recently announced organizational changes, including major layoffs and the closure of their Los Angeles studio, resulting in the loss of 230 jobs, while also canceling the NBA All-World and Marvel: World of Heroes games.
The decision to restructure was driven by Niantic’s expenses growing faster than revenue, which necessitated a reassessment of their operations. Despite revenue returning to pre-Covid levels, new projects did not generate the expected revenue, partly due to the tough market environment and global macroeconomic slowdown.
Niantic acknowledged that they did not meet their goals in terms of quality, innovation, monetization, and social core. As a result, the company will focus on augmented reality gaming with a smaller contingent of games, while continuing to produce popular titles such as Pokemon Go, Pikmin Bloom, Peridot, and Monster Hunter Now.
The closure dates for NBA All-World and Marvel: World of Heroes have not been announced.
Reasons for Restructuring
The studio’s recent organizational changes were prompted by the need to adapt to a challenging market environment, leading to significant adjustments in their gaming portfolio. Niantic’s decision to restructure and cancel NBA All-World and Marvel: World of Heroes games was driven by several factors.
Firstly, Niantic’s expenses had been outpacing their revenue growth, necessitating a reassessment of their projects. Despite the return of revenue to pre-Covid levels, new ventures did not generate the expected financial results. Additionally, the global macroeconomic slowdown further impacted Niantic’s plans. The company acknowledged their failure to meet goals of quality, innovation, monetization, and social core.
Consequently, Niantic aims to focus on augmented reality gaming, with a smaller contingent of games, in order to align with market demands and ensure future success. The closure dates for NBA All-World and Marvel: World of Heroes games have yet to be announced.
Impacted Games
Closure dates for two of Niantic’s game titles have yet to be announced. The affected games, NBA All-World and Marvel: World of Heroes, will be shut down as part of the company’s restructuring efforts. NBA All-World, a basketball-themed game, and Marvel: World of Heroes, based on the popular Marvel universe, had recently soft-launched in select regions. Unfortunately, these games did not generate the expected revenue, contributing to Niantic’s decision to cancel them.
The closure of these games will result in a loss of jobs for 230 staff members. Despite the cancellation of these titles, Niantic will continue to focus on augmented reality gaming, with games like Pokemon Go, Pikmin Bloom, Peridot, and Monster Hunter Now remaining in production. This shift in strategy is aimed at addressing the challenges faced by the company and ensuring its future success in the competitive gaming industry.
Conclusion
Niantic, the studio behind popular games like Pokemon Go, has announced major layoffs and organizational changes. The company is closing its Los Angeles studio, resulting in the loss of 230 jobs. They have also decided to cancel the development of NBA All-World and Marvel: World of Heroes games.
Niantic’s decision to restructure and cancel games was driven by expenses growing faster than revenue. Despite this, their other projects will remain in production. One interesting statistic is that Niantic’s revenue is not meeting expectations, leading to the need for these changes.
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