Pokemon Goa global phenomenon game in 2016, generated huge revenue for Niantic and made them one of the best-known game developers in the world. It looked like they were on the road to success. Six years later, the situation is very different for the development company. World renowned developers Niantic have now had to cancel their 4 projects due to a financial crisis.
Recently, Niantic is riddled with multiple issues like insufficient revenue, lack of project completion, etc. Bloomberg report reveals the following information about the development company.
John Hawke, the CEO of Niantic Games, said the company has laid off and furloughed about 8% of its employees’ jobs. This amounts to around 80 to 90 employees as a measure to combat the financial crisis the company is facing.
Moreover, they have also been promoted to cancel 4 upcoming game projects. This includes expected play Transformers: heavy metal which was developed in partnership with Hasbro and TOMY. Other canceled projects include Sleep No More, Punchdrunka and two other projects named Blue Sky and Snowball.
Failure of Harry Potter: Wizards Unite and Pikmin Bloom heavily affected Niantic
Pokémon Go has become a hit title, earning $300 million in launch revenue. It also generated $6 billion in additional revenue over its lifetime, which is about $1 billion per year. Harry Potter: Wizards Unite had a booming launch, but the game quickly became plagued with multiple issues and Niantic eventually stop the game earlier this year. another game, Pikmin Flower, which made $5 million, is barely filming right now. Niantic is now struggling with a budget and a lack of fame after Pokémon Go.
According to the report, Pokémon Go remains a stable source of revenue for the company, which ensures that Niantic isn’t in immediate danger, but being too reliant on one game could spell disaster in the long run. Because, among other things, not every game can sustain itself consistently every year, with a drop in revenue being inevitable at one point or another, which explains the complicated situation of the company at the moment.
Although struggling, Niantic still has projects in hand, and all they can do is hope one of them finds success somewhere near Pokémon Go and keeps the company going. One of these upcoming projects is NBA All-World, officially licensed by the NBA and he could, as far as we know, be one of the guardian angels of this company.
What do you think of the fact that Niantic had to cancel its 4 projects? Let us know in the comments below!