![]() We believe that we can build key content and platform services that will help realize the promise of this technological shift. We remain long term believers in augmented reality as the future form factor for computing. What does this mean for Niantic moving forward? We have not met our goals in all of these areas. ![]() Our AR map and platform must deliver the features that developers want in a robust and reliable way. Teams need platform tools that are force multipliers, enabling them to build at the highest quality with powerful engagement features quickly and efficiently. It also requires strong monetization and a social core which can drive viral growth and long term engagement. Today’s highly competitive mobile gaming market requires dazzling quality and innovation. We also bear responsibility for our own performance. We also face an AR market that is developing more slowly than anticipated, because of technology challenges and because larger players are slowing down their investments in light of the macro environment. In the years since Pokémon GO’s 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. We are operating in a tough market environment due to the overall global macroeconomic slowdown, as well as unique challenges in the mobile gaming and AR markets. There are both internal and external factors. ![]() This change will bring expenses and revenue back into line while preserving our core assets and long term upside. Post Covid, our revenue returned to pre-Covid levels and new projects in games and platform have not delivered revenues commensurate with those investments. In the wake of the revenue surge we saw during Covid, we grew our headcount and related expenses in order to pursue growth more aggressively, expanding existing game teams, our AR platform work, new game projects and roles that support our products and our employees. The answer is straightforward – we have allowed our expenses to grow faster than revenue. This means we are laying off around 230 Niantics. As a result, we will be sunsetting NBA All-World and stopping production on Marvel: World of Heroes. Specifically, this means we will be closing our LA studio, reducing our game platform team and making additional reductions across the company. We also want to increase our focus on building for the emerging class of MR devices and future AR glasses. The mobile gaming market is very mature and only the best and most differentiated titles have a chance to succeed. 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. They mean some difficult changes for our organization, but I believe they are important if we are to weather the current challenges in the market and take advantage of the long term opportunity in front of us. I have some news to share with you about steps we’re taking to set Niantic up for the future. ![]() Today John Hanke shared the following e-mail with Niantic employees:
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