Success can be a double-edged sword. Some companies strike gold with one groundbreaking idea, only to find themselves struggling to follow up on that success. One of the best examples of this is Niantic Inc., the company behind Pokémon Go. When Pokémon Go launched in 2016, it became a global sensation, generating billions of dollars and turning Niantic into a major name in mobile gaming.

But what happened next? Niantic struggled to create another hit game. Several of their follow-up projects failed, leading to mass layoffs, canceled projects, and a major shift in company strategy.

This isn’t just a Niantic problem—it happens to many companies that find massive success early on. That first big win often leads to overconfidence, making it easy to fall into the trap of sticking to the same formula instead of pushing forward with new innovations.

So, how can businesses avoid this fate? How do you keep coming up with big, game-changing ideas and avoid becoming a one-hit wonder? Let’s break it down.

Niantic Inc.: The Company That Struck Gold with Pokémon Go

Niantic Inc. was founded in 2010 as an internal project within Google before becoming an independent company in 2015. It was led by John Hanke, who had experience in mapping technology, augmented reality (AR), and location-based services.

Before Pokémon Go, Niantic developed a lesser-known game called Ingress—an AR-based mobile game that encouraged players to explore real-world locations while competing in a sci-fi-themed battle. Though Ingress had a dedicated fanbase, it didn’t reach mainstream popularity.

That changed when Niantic partnered with Nintendo and The Pokémon Company to develop Pokémon Go, blending the Ingress gameplay model with one of the most beloved gaming franchises in history.

Pokémon Go: A Global Phenomenon That Redefined Mobile Gaming

When Pokémon Go launched in July 2016, it quickly became one of the most downloaded and played mobile games of all time. People everywhere were walking around with their phones, searching for virtual Pokémon in real-world locations. It was a perfect mix of nostalgia, technology, and social engagement. Why Was Pokémon Go So Successful?

The Power of Nostalgia – Pokémon was already a massively popular franchise. By bringing Pokémon into real life through AR, Niantic tapped into millions of fans’ childhood memories.

Innovative AR Gameplay – Unlike traditional mobile games, Pokémon Go encouraged players to explore their surroundings, making it feel like a real-world adventure.

Social & Viral Appeal – The game wasn’t just played—it became a cultural event. People were gathering in parks, forming Pokémon-hunting groups, and sharing their experiences online.

Perfect Timing – In 2016, smartphones were more powerful than ever, AR technology was improving, and people were looking for new ways to interact with digital content.

A Profitable Business Model – The game was free-to-play but made money through in-app purchases, which turned out to be a goldmine.

How Much Money Did Pokémon Go Make?

• $1 billion in revenue in its first year (2016).

• Over $7 billion in total revenue by 2024.

• At its peak, Pokémon Go had over 250 million monthly active users.

This kind of success cemented Niantic as a major player in mobile gaming. But what happened next?

Niantic’s Struggle to Follow Up on Pokémon Go’s Success

With such a massive hit, you’d expect Niantic to launch another viral game. But despite multiple attempts, they couldn’t replicate the magic of Pokémon Go.

Niantic’s Failed Attempts at Another Hit Game

Harry Potter: Wizards Unite (2019) – A location-based AR game similar to Pokémon Go but with Harry Potter elements. It failed to attract a large audience and shut down in 2022.

Pikmin Bloom (2021) – A collaboration with Nintendo that focused on planting flowers while walking. It didn’t generate much interest.

NBA All-World (2023) – A basketball-themed AR game that failed to gain traction and was shut down in less than a year.

Peridot (2023) – A virtual pet game with AR mechanics, but it didn’t make a significant impact.

After these failures, Niantic laid off over 200 employees and canceled multiple projects in 2023.

Why Do Companies Struggle After a Big Success?

Niantic isn’t alone—many startups that find massive success early on struggle to keep innovating. But why does this happen?

1. Overconfidence in the Winning Formula

When something works, it’s tempting to keep doing the same thing. Niantic tried to recreate Pokémon Go by making other AR-based location games, but that wasn’t enough.

2. Failure to Adapt to Market Changes

The gaming industry evolves fast. What worked in 2016 doesn’t necessarily work in 2024. Niantic failed to evolve beyond location-based AR gaming, while competitors like Epic Games and Roblox were pushing into new frontiers.

3. Complacency & Lack of Risk-Taking

Some companies get too comfortable after an initial success. Instead of taking risks and experimenting, they stick to what they know, leading to stagnation.

4. Spreading Resources Too Thin

Niantic expanded quickly, launching multiple projects at once instead of focusing on developing one strong follow-up game.

5. Lack of a Long-Term Innovation Strategy

Companies like Apple, Google, and Tesla succeed because they focus on constant innovation. Niantic, however, was too focused on Pokémon Go and didn’t build a strong pipeline of innovative ideas.

How to Keep Innovating After a Big Success

If you want your company to stay ahead, you need to keep generating big ideas. Here are seven strategies to make sure you never run out of innovation:

1. Don’t Get Stuck in One Success

Companies must reinvent themselves continuously. Instead of repeating old ideas, explore new directions, technologies, and business models.

2. Encourage a Culture of Creativity

Build an innovation-driven work environment where employees feel free to experiment and take risks. Google’s “20% time” policy encourages employees to work on side projects, which has led to products like Gmail and Google Maps.

3. Invest in Research & Development (R&D)

Innovation requires investment. Companies like Apple and Tesla pour billions into R&D. Your business doesn’t need to spend billions, but setting aside a budget for innovation is crucial.

4. Listen to Your Customers

Your audience can guide you to your next big idea. Pay attention to customer feedback, pain points, and emerging trends.

5. Embrace New Technologies

Don’t just follow trends—lead them. Explore AI, VR, blockchain, and other emerging technologies to stay ahead of the curve.

6. Encourage Fast Experimentation

Instead of betting everything on one big idea, run small, fast experiments. Test new ideas, learn from failures, and iterate quickly.

Final Thoughts: Stay Hungry, Stay Creative

Niantic’s journey is a powerful lesson in why companies must continuously innovate. Pokémon Go was a once-in-a-lifetime hit, but Niantic’s failure to keep the momentum going forced them to restructure and pivot away from gaming.

If you want to keep your company thriving, you need to stay creative, embrace change, and never stop searching for the next big idea. Success is great, but staying innovative is what keeps you in the game.

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Further reading: How To Build Momentum In Your Company

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