Tech layoffs across the world that started in 2022 continue and have even affected major gaming companies like EA and Ubisoft. The US-based mobile games developer Niantic has now announced 230 job cuts as a part of a restructuring plan. In a letter sent to the employees, the company\u2019s CEO John Hankehas confirmed the layoffs. The letter also highlighted that the affected employees are based out of Niantic\u2019s Los Angeles-based studio which is also shutting down.As a part of the downsizing, the company will even cancel the NBA All-World game and will also stop producing its upcoming Marvel-based title.Hanke has also explained the reason for the company\u2019s decision in the letter. As per Pitchbook, Niantic had 1,050 employees in 2022.
Hanke noted both \u201cinternal and external factors,\u201d resulting in such a restructuring move, which also includes the overall global macroeconomic slowdown. In 2016, Niantic launched its first major hit, Pokemon Go and the company\u2019s decision highlights how the mobile games industry has changed over the years. Since the release of the game, both Apple and Google have introduced changes in their respective app stores that restrict advertising tracking among apps. These changes have made advertising to gain new users more expensive as well as unpredictable for developers.
\u201cIn the years since Pok\u00e9mon Go\u2019s launch, the mobile market has become crowded and changes to the app store and the mobile advertising landscape have made it increasingly hard to launch new mobile games at scale,\u201d Hanke mentioned. The company also added that supporting Pokemon Go is it\u2019s \u201ctop priority.\u201d According to a report by research firm Data.ai, the overall App Store spending on games has also reduced by 5% in 2020 to $110 billion.
Evolution of AR apps<\/span>
Augmented reality (AR) apps integrate computer graphics and data into the real world. The company\u2019s move also hints at the evolution of these AR apps. Pokemon Go is also an AR-based game that can display a digital monster which also interacts with the real world via a phone\u2019s screen. <\/p>\nHowever, the major companies have started integrating the technology into headsets that use powerful cameras to combine the real and virtual worlds which is also expected to be the next major computing platform. Earlier this year, social media giant <\/p>\n
Meta launched its Quest Pro headset and in 2024 iPhone maker Apple is expected to ship its Vision Pro headset which the company introduced earlier this month.
\u201cWe believe that we can build key content and platform services that will help realise the promise of this technological shift,\u201d Hanke wrote in the letter.
Hanke also added that the AR market is \u201cdeveloping more slowly than anticipated, because of technology challenges and because larger players are slowing down their investments in light of the macro environment.\u201d<\/div>\n