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In an internal email to employees that Bloomberg has obtained, Niantic CEO John Hanke explains that the company is facing “a period of economic turbulence“and that she must take additional measures to”cope with potential economic storms to come“and this even if Niantic already has”reduces costs in different areas*”, can we read.

Bloomberg explains that canceled projects include Heavy Metala game based on the Transformers license announced last year, and Hamleta collaboration with Punchdrunk, the immersive theater troupe known for Sleep No More. The other two canceled projects are codenamed Blue Sky and Snowball.

Founded in 2010 and specializing in augmented reality technologies, Niantic exploded into the eyes of the world thanks to Pokemon GO, which has remained one of the highest-grossing mobile games in the world, generating at least $1 billion every year since its release in 2016, according to estimates from Sensor Tower. With a direct impact on the finances of Niantic but also those of The Pokémon Company.

A success that Niantic was unable to replicate with its subsequent projects, including Harry Potter: Wizards Unite which closed its doors this year. Other projects like those based on the board game Catan or the walking simulator Pikmin Bloom went even more unnoticed. Earlier this week, the studio announced NBA All Worlda new game in augmented reality which will therefore become its new priority with Pokemon GO.

We recently decided to stop production on some projects and reduce our workforce by around 8% to focus on our key priorities. We are grateful for the contributions of those leaving Niantic and support them through this difficult transition.“, confirmed a spokesperson for Niantic.

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