Niantic Raises $300M to Build the Real-World Metaverse

Niantic Secures $300 Million to Develop AR Metaverse

Niantic, the company behind popular augmented reality (AR) games such as Pokémon GO, has successfully raised $300 million in funding led by Coatue. This investment has resulted in a company valuation of $9 billion.

Founded as a spin-off from Google and headquartered in San Francisco, Niantic intends to utilize these funds to further develop what it terms a “real-world metaverse.”

A Different Vision of the Metaverse

John Hanke, Niantic’s founder and CEO, has previously expressed skepticism towards the virtual reality (VR)-centric metaverse concept, characterizing it as a potentially “dystopian nightmare.”

This contrasts sharply with companies like Facebook, now Meta, which are heavily investing in VR technology. Niantic, instead, is focused on creating technology that enhances engagement with the physical world.

Earlier this month, Niantic released the Lightship AR Developer Kit (ARDK), providing free access to AR development tools for those familiar with the Unity game engine.

Bridging the Virtual and Physical

“We at Niantic firmly believe that individuals experience the greatest happiness when their virtual interactions lead to real-world experiences,” Hanke stated.

“A real-world metaverse, unlike its science fiction counterpart, aims to leverage technology to enrich our perception of the world as we have known it for millennia.”

Expanding AR Capabilities

The new funding will be allocated to the expansion of the ARDK. This kit is already being utilized by a diverse range of organizations, including Coachella, Historic Royal Palaces, Universal Pictures, SoftBank, Warner Music Group, and the PGA of America, to create innovative AR experiences.

Rather than relying on VR headsets, which remain inaccessible to many, AR applications primarily utilize smartphones to encourage exploration of the surrounding environment.

For instance, a familiar mural might gain new significance through a user-generated description within Pokémon GO, revealing its historical context.

Niantic reports that its games are played by tens of millions of users monthly, collectively walking over 10.9 billion miles since their launch.

Coatue’s Perspective

“Niantic is constructing a platform for AR founded on a detailed 3D map of the world, which we anticipate will be pivotal in the next phase of computing,” explained Matt Mazzeo, a general partner at Coatue.

“We are enthusiastic about partnering with Niantic because we envision this infrastructure supporting a metaverse grounded in reality and driving the subsequent evolution of the internet.”

Addressing Accessibility Concerns

While Niantic’s vision presents an alternative to Meta’s VR-focused approach, AR technology is not without its challenges. The company’s latest game, Pikmin Bloom, centers around walking, potentially excluding players with mobility limitations.

Pokémon GO has a dedicated community of disabled players who have advocated for minor in-game adjustments to improve accessibility for individuals with limited movement.

Future Outlook

Despite the varying success of its titles – Pokémon GO generated over $1 billion in revenue in 2020 and is projected to exceed that figure this year, while Harry Potter: Wizards Unite is being discontinued due to declining user engagement – Niantic’s strategy remains compelling.

As independent developers gain access to the Lightship ARDK, the potential of a “real-world metaverse” will continue to unfold and be explored.