'Pokemon Go' creator Niantic suffers metaverse woes

After years of hype, optimism in the business potential of the metaverse has dimmed considerably, with companies including Meta, Microsoft and Tencent Holdings Ltd slashing their metaverse units. — Image by Lifestylememory on Freepik

Just a few years ago, tech evangelists were hailing Niantic Inc, the maker of the hit game Pokémon Go, as proof of the metaverse’s vast and growing business potential. But now, following the lackluster debut of yet another augmented-reality game, Niantic is looking like something else - more evidence of the metaverse’s vast and growing business woes.

On May 9, the San Francisco-based, closely held software maker launched Peridot, a free, pet-simulator game for mobile phones that aims to blend the digital and physical worlds into what the company has called the "real-world metaverse.” After downloading the Peridot app, players hatch a unique Dot and give their new digital pet a name. Using the phone’s camera lens, the game then superimposes one’s pet on whatever real-world vista the user points their phone at, say, a patch of grass in their backyard. From there, the Dot can run through the phone’s view of the yard, chasing tennis balls, digging up treats and interacting with the objects around them as they gain capabilities and grow.