Niantic acquires 8th Wall, which helps developers make web-based AR apps, in what the company says is its “largest acquisition to date”
Jay Peters / The Verge :
Context & Ripple Effects
Niantic had already moved beyond Pokémon Go toward third-party AR infrastructure, first by opening its underlying AR platform to outside developers and then by absorbing 6D.ai’s spatial-development technology into its Real World Platform. 8th Wall adds a web-based creation route to that developer-facing strategy.
The deal also extends the platform push behind Lightship for AR app developers, giving Niantic a broader set of tools through which developers can build location- and camera-oriented experiences.
First-order effects
- 8th Wall’s web-based AR tools and developer base move under Niantic, making the acquisition the company’s largest stated purchase to date.
- Niantic gains a web AR capability alongside its existing mobile-oriented AR platform efforts, while 8th Wall developers gain a platform owner with a larger AR infrastructure agenda.
Second-order effects
- Developers evaluating AR tooling face a more vertically integrated Niantic offering, spanning underlying platform technology, mobile development tools, and web-based AR creation.
- Other AR developer-tool providers must compete against a buyer that has repeatedly used acquisitions, including the 6D.ai purchase, to add spatial-computing capabilities to its platform.
Third-order effects
- If Niantic continues to combine acquired tooling with its own developer platforms, AR creation may consolidate around a smaller number of companies that control both spatial infrastructure and distribution-facing tools.
The trend: Niantic is building an AR platform stack through a mix of opening internal technology, launching developer products, and acquiring specialized tooling.