Pokémon Go, if you have never heard about it, you must have been living under a rock for the past couple of months. Since its launch in July, the augmented reality game already broke five Guinness World Records 1, including most international charts topped for downloads and revenue; surpassing competitors like Tinder, Facebook, Candy Crush and Instagram. Although the initial success brought Nintendo unexpected revenue, investors are now questioning whether this triumph will be sustainable on the long run.
Nearing the end of the summer, the amount of active users and engagement in Pokémon Go steadily declined 2; adding fire to doubts on the future of the game and the augmented reality sector as a whole. Some have argued that this trend is logical because it represents loyal users reaching a plateau 3, however investors are very skeptical. The initial prediction for Apple’s revenue on the game was 3 billion dollars over two years 4, but any success at that magnitude seems overly optimistic with the current trend.
According to Google Trends, interest in the augmented reality sector spiked with the release of Pokémon Go and declined in cohesion. This proves how consumers have minimal interest in the field and would rather invest in virtual reality on the contrary 5. The difference between the two is that augmented reality is adding virtual components to our current world as is, whereas virtual reality is the construction of an entire world where the developer can program anything to their liking, for example, a video game.
I believe that users just got tired of the game quickly, without any new updates or innovation, the initial surge lost momentum and interest became deprived. So, moving forward, where can this former champion go? Some have suggested including updates that draw parallels to the original game, person to person battles as well as trading Pokémon.
As an attempt to recapture interest, Niantic and Nintendo invested on wearable technology, Pokémon Go Plus 6. In my opinion, I do not see any benefit from this investment. A specific piece of technology for the sole purpose of playing a game use will not satisfy the growing needs of efficiency and innovation for consumers.
My suggestion for the company is to capitalize on what made them so successful initially, the nostalgia of the player’s childhood. Many players have commented on reliving their childhood through playing the game, I believe that is what attributes most to the success. Converting to virtual reality instead of augmented reality is another option worth seeking. As evidenced by Google Trends, consumers prefer a fantasy world, like the original game, as opposed to an augmented one 7. If Nintendo focuses on providing what the consumers want, I believe that they will capture success once again.
Endnotes:
[1] Swatman, By Rachel. “Pokémon Go Catches Five New World Records.” Guinness World Records. N.p., 2016. Web. 03 Oct. 2016.
[2,5,7]“These Charts Show That Pokemon Go Is Already in Decline.” Bloomberg.com. Bloomberg, n.d. Web. 03 Oct. 2016.
[3]Morris, David Z. “Pokémon Go Is Stalling Out, Probably Because There’s Not Much Game There.” Fortune Pokmon Go Is Stalling Out Probably Because Theres Not Much Game There Comments. N.p., 2016. Web. 03 Oct. 2016.
[4] How Big? Pokemon Go Set a New Apple Record as the App with the Most App Store Downloads in Its First Week. Ever. Apple (AAPL. “Pokemon Go Breaks Apple Download Records.” CNNMoney. Cable News Network, n.d. Web. 03 Oct. 2016.
[6]Farber, Madeline. “A Wearable ‘Pokémon Go’ Device Is Set To Launch Next Week.” Fortune A Wearable Pokmon Go Device Is Set To Launch Next Week Comments. N.p., 2016. Web. 03 Oct. 2016.