Niantic’s Peridot Game Fails to Impress in the Metaverse
A few years ago, technology evangelists hailed Niantic Inc., the maker of the successful game Pokémon Go, as proof of the vast and growing business potential of the metaverse. But now, after the lackluster debut of another augmented reality game, Niantic is looking like another evidence of the vast and growing business problems of the metaverse.
Peridot Game
On May 9th, the San Francisco-based privately-held software maker released Peridot, a free pet simulator game for mobile phones that aims to mix the digital and physical worlds in what the company called the “real-world metaverse.” After downloading the Peridot app, players hatch a unique Dot and give it a name. Using the phone’s camera lens, the game overlays the pet onto any view of the real world for which the user points the phone, say, at a patch of grass in their backyard. From there, the Dot can run through the phone’s view of the backyard, chasing tennis balls, unearthing treats, and interacting with the objects around it as they gain skills and grow.
Despite a lot of cuteness and some captivating visuals, the game has so far fallen with a whimper. After one week, amid a series of negative reviews in the app store, Peridot generated 675,000 downloads since its May 9th launch until May 13th, according to data from researcher Sensor Tower. Some reviewers complained that its augmented reality is inconsistent and quickly drains phone batteries. Others criticized the game’s monetization strategy around creating Dots. The game has a rating of 3 out of 5 on the Google Play Store.
“The tepid response and low download numbers offer a sobering perspective on the enthusiasm for mixing the virtual and the real,” said Joost van Dreunen, a professor at the Stern School of Business at New York University.
Niantic’s Response
Niantic minimizes these concerns and expresses confidence in both Peridot and the public’s appetite for augmented reality (AR) games. “Peridot is probably the first mobile game in the world played entirely in AR, and we’re just getting started,” said Mark Van Lommel, a company spokesman. “While the initial demand has exceeded our expectations, we do not expect Peridot to be an overnight success but rather a long-term project that will showcase the potential of experimental AR and game design.”
Niantic’s Struggles
Niantic’s struggles reflect the slowdown faced by the industry as a whole. After years of hype, optimism about the business potential of the metaverse has considerably diminished, with companies such as Meta, Microsoft, and Tencent Holdings Ltd. cutting their metaverse units. Across the market, AR and VR products remain a niche – both as smartphone apps and as dedicated devices. In 2022, sales of virtual reality headsets even decreased, according to NPD Group data.
“People may hesitate to adopt this technology because, with your phone, you can simply put it away and go out to look at your plants and not worry about getting an AI ad for that type of plant,” said Quinn Myers, author of Google Glass.
In early 2022, Niantic laid off 8% of its workforce and canceled four projects.
“It seems that Niantic, like almost every other technology company worldwide, has found the problem to be more difficult than anyone imagined,” said Matthew Ball, CEO of venture capital firm Epyllion and author of The Metaverse. “The timeline for AR and VR glasses is longer than expected. The barrier for the minimum viable product to be launched to the masses is much higher.”
The high price of products may also be hindering popular adoption. The Meta’s Quest 2 mixed reality headset costs $400, while the latest-generation Pro headset costs $1,000. Apple Inc.’s upcoming mixed reality headset may cost $3,000, Bloomberg reports.
In 2021, Niantic announced that it was teaming up with Qualcomm Inc. to create what it called an “external AR headset” and released some initial renderings. So far, few details have emerged, but Van Lommel says the company is continuing to work on the reference design and would produce the product in partnership with other companies. In a recent demonstration, Niantic developers said the company hopes Peridot will one day be played on AR headsets.
But, after Peridot’s struggles, the case for mass adoption of AR seems even more unlikely. “They’re hard products to manufacture, technology that’s hard to produce, and it’s hard to make games with a 3D experience,” said Ben Arnold, an analyst at NPD consumer tech industry.
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