Pokemon GO was not Niantic’s first attempt at creating a mobile game, but suffice to say it was probably their most successful endeavor to date. Heck, despite how old the game is, there are still plenty of people around the world who are still enjoying the game to this date, making in-game purchases that definitely helps Niantic’s bottom line.
That being said, the company has since expanded to other mobile games, but unfortunately it does not appear to have been as successful as they had hoped. So much so that the company has announced that they will be shutting down its LA studio. This is according to an email sent out to Niantic employees by the company’s CEO, John Hanke.
“I have made the decision to narrow our focus for mobile game investments, concentrating on first party games that most strongly embody our core values of location and local social communities. The mobile gaming market is very mature and only the best and most differentiated titles have a chance to succeed. We also want to increase our focus on building for the emerging class of MR devices and future AR glasses.”
Keep in mind that the shutting down of the LA studio does not mean that Niantic itself is shutting down. Instead, as per the email, the decision to close its LA operations means that the company will be focusing more on its first-party titles. To that effect, Niantic has also revealed that they will be sunsetting titles like NBA All-World and stopping the production of Marvel: World of Heroes.
As a result of shutting down its LA studios, it will see around 230 employees laid off.