Pokemon Go developer Niantic has posted a shocking announcement that they will be shutting down their LA studio and laying off hundreds of staff.

In total the company is laying off 230 members of staff. The studio shutdown also means they’ll be sunsetting NBA All-World while also canceling their upcoming title, Marvel: World of Heroes, which was announced last year.

They give very direct reasons for these decisions. Niantic saw major revenue growth during the COVID pandemic as many stayed inside and were more likely to spend money entertaining themselves on games. Even though ironically their biggest game in Pokemon Go was designed for people to go outside and explore.

However as COVID restrictions have been lifted, revenue declined and their new projects created during this time failed to bring in enough to make up for their expenses. So it makes sense for Niantic to make cuts, as others in the industry have done so lately.

While this is unfortunate news for anyone looking forward to Niantic’s new game or were enjoying NBA All-World, it’s certainly unfortunate for those who now find themselves out of a job. Niantic have assured those who play their other games that support will continue.

Such as with Pokemon Go, where they say that their “top priority” is to keep the game running and in a healthy state. They also state their confidence on other games such as Pikmin Bloom, Peridot and Monster Hunter Now will also find success and therefore they’ll hopefully continue support for years to come.