Niantic lays off 230 employees, closes its Los Angeles studio, and moves away from in-house game development, saying its expenses grew faster than its revenue

Kotaku 2023-06-30

Context & Ripple Effects

This is Niantic's second documented retrenchment in the corpus: its 2022 cuts and project cancellations had already reduced the company's development slate. The newer move goes further by pairing workforce reduction with a stated shift away from internally developed games.

It also marks a contrast with Niantic's earlier effort to build technical capacity through the 6D.ai acquisition and integration into its Real World Platform. The issue is now less expansion of that footprint than aligning operating costs with revenue.

First-order effects

230 employees lose their jobs, and Niantic's Los Angeles studio is shut, immediately reducing the company's internal game-development capacity.
Niantic is redirecting its game strategy away from in-house development as it responds to expenses outpacing revenue.

Second-order effects

Teams, projects, and prospective hires tied to internally built titles face a narrower path inside Niantic; external developers and partners could become relatively more important if the company continues to pursue games without building them itself.
The decision reinforces the cost discipline already visible in Niantic's earlier project cancellations, adding to pressure across game studios to limit pipelines whose costs cannot be supported by current revenue.

Third-order effects

If similar moves persist, game companies may place a higher premium on smaller internal portfolios and externally sourced development rather than maintaining broad in-house production organizations.
The pattern points to a more selective games market in which funding and headcount are increasingly tied to demonstrable revenue support, though this single company decision cannot establish an industry-wide shift on its own.

The trend: The story is one data point in gaming's shift from expansionary studio building toward tighter cost control and more selective development bets.

Discussion

@rjfaas@mastodon.social R.J. Faas on mastodon
Pokémon GO maker says Apple Vision Pro validates their work as it closes studio and cancels games - “The rise of MR (video pass-through devices such as the Meta Quest Pro and Apple Vision Pro) validates the long-term importance of AR, but this class of device is only an intermedi…
@lifeofc @lifeofc on x
A bit of news, I'm no longer at @NianticLabs. I was one of the 230 people that they laid off today. https://nianticlabs.com/... In order to right-size the ship, Niantic made the hard decision to focus their resources on their core products like Pokémon Go and to divest in project…
@pvpoke @pvpoke on x
Two months ago, the VP of Pokemon GO and Niantic reps were boasting about profits and how the remote raid changes were for the good of the game. This is heartbreaking for all the people whose livelihoods were lost, and it starts with the decision makers at the top. https://twitte…
@sweetpotatoes Nicole Carpenter on x
Niantic laid off ~90 people in 2022, and are laying off ~230 people now. The company was valued at $9 billion in 2021, and CEO John Hanke said today that the company is growing faster than revenue. https://www.polygon.com/...
@ryanfaas R. J. Faas on x
“The rise of MR (video pass-through devices such as the Meta Quest Pro and Apple Vision Pro) validates the long-term importance of AR, but this class of device is only an intermediate stepping stone to true outdoor AR devices.” https://9to5mac.com/...
@lifeofc @lifeofc on x
Just so people know, I'm totally fine! It was something I expected and truly do think it was the right thing for Niantic. I also believe in sharing both the ups and the downs to show how life is not “up only”. Even the best of us have our down moments. Progress never happens in a…
@knoebelbroet Knoebel on x
Niantic (Pokemon GO) is shutting down its L.A. Office and is laying off 230 employees. They also cancelled their upcoming Marvel game ‘Marvel: World of Heroes’ https://kotaku.com/... [image]
@jreseawolf @jreseawolf on x
https://kotaku.com/... Condolences to the 230 souls laid off. I hope you bounce back quickly! Now, to those running things at @NianticLabs: will THIS wake you up? Get out from your pillow fort, take off your noise canceling headphones, & see reality: your vision is FAILING! 1/
@gostadiumpvp @gostadiumpvp on x
Saddened to hear this, not because we liked the titles or always agree with all decisions, but because people - good people - are effected. If you're reading this, you did your best in your position and you'll do great moving forward. https://nianticlabs.com/...
r/Games r on reddit
Niantic sunsets NBA All-World and stops production on Marvel: World of Heroes, says “top priority is to keep Pokémon GO healthy and growing as a forever game”
r/PikminBloomApp r on reddit
layoffs at Niantic
r/technology r on reddit
Gaming company Niantic lays off over 200+ employees
r/nbaallworldhub r on reddit
Niantic is sunsetting NBA All-World
r/Ingress r on reddit
Niantic has “organisational update”, closes NBA All-World and cancels Marvel: World of Heroes. No mention of Ingress at all

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