Popular on Ex Nihilo Magazine

Startup Stories

Pokémon Go: The Craze That Had Everyone Chasing Pikachu…Then Quit

Summer 2016. Parks filled with strangers staring at their phones, walking in odd patterns. Friends abandoning pints mid-conversation to

Pokémon Go: The Craze That Had Everyone Chasing Pikachu…Then Quit

Summer 2016. Parks filled with strangers staring at their phones, walking in odd patterns. Friends abandoning pints mid-conversation to chase a Pikachu down the street. Crowds gathering at random spots because someone dropped a lure module. Nearly a decade ago, the world went absolutely mad for Pokémon Go.

You couldn’t escape it. Office workers on lunch breaks hunting Squirtles. Teenagers forming hunting parties at midnight. Adults who’d never touched a video game suddenly asking “Have you seen any rare spawns near here?” The phenomenon wasn’t just big. It was everywhere.

Then it vanished. Almost as quickly as it arrived. The rise and fall of Pokemon Go stands as one of the most dramatic examples of viral success meeting reality in tech history.

The Fastest Rise in Gaming History

Pokémon Go was downloaded more times in its first week than any other app in history. By July 19, 2016, just two weeks after launch, it peaked at 45 million daily active users in the United States alone. Globally, monthly active users surpassed 232 million.

The numbers were staggering. Within 60 days, the game hit 500 million downloads worldwide. First-month revenue broke records at $207 million. The game surpassed $1 billion in lifetime revenue within its first seven months.

This wasn’t just a successful app launch. It was a cultural earthquake. Google searches for “Pokémon Go” exploded. The game inspired 200,000 Spotify playlists. Starbucks created a Pokémon Go Frappuccino. Politicians used Pokéstops to attract voters. The game had transcended gaming and become part of daily life.

Augmented reality suddenly felt real. Players weren’t just tapping screens. They were walking through their actual neighbourhoods, discovering places they’d never noticed, bumping into other trainers at 2am because a Dragonite spawned near the corner shop.

The Fastest Fall

Then came the crash.

At its peak, Pokémon Go was drawing in over 200 million people per month. By December 2016, that number had fallen to less than 50 million. Daily users dropped from 23 million in 2016 to just 5 million in 2017. That’s a 78 percent collapse in active players within months.

By August 2016, just one month after peak popularity, daily active users had dropped by roughly 12 million. The streets that had been packed with trainers emptied out. The phenomenon that seemed unstoppable had stalled. Understanding the rise and fall of Pokemon Go requires examining the specific mistakes that accelerated this decline.

What went wrong?

The Problems Nobody Fixed Fast Enough

The game launched incomplete. The launch version enabled players to collect Pokémon while roaming the real world, but featured shallower gameplay than its Nintendo siblings. Players began scratching their heads after realizing they were constantly picking up similar Pokémon time and again in their area. Finding your fifteenth Pidgey or twentieth Rattata wasn’t exciting. It was boring.

The catalyst was arguably the removal of Pokémon tracking. The tracking feature, broken from the start, was supposed to show you how close you were to nearby Pokémon. When it stopped working, third-party apps filled the gap. Then Niantic shut those down too, removing their own broken tracker at the same time.

Players were left so disillusioned that they requested refunds. The developers didn’t warn players about the change. They didn’t explain why. They just went silent. This led to claims that “silence is killing Pokémon Go”.

Server problems plagued the game for weeks. Trying to catch Pokémon in crowded areas became impossible. The game would freeze, crash, or refuse to load. For a game that required you to be out in public spaces, this was fatal.

The Gym Problem

The Pokémon Gyms would have been a great place to create exciting social interaction through combat and collaboration. However, new players found the top 1 percent of players had already created “monopolies” in gyms. Hardcore players who’d spent weeks levelling up their Pokémon dominated every gym. New players couldn’t compete. Casual players gave up trying.

The game became repetitive for anyone who wasn’t in the top tier. Catching the same Pokémon repeatedly lost its charm. Gym battles felt impossible unless you’d been grinding since day one. The fun evaporated.

When Hype Burns Too Hot

The situation with Pokémon Go is a textbook example of the effects of hype and what happens when a product doesn’t quite meet hyped expectations. The world went absolutely mental. Investors threw money at anything Pokémon-related without understanding the product beyond “lots of people are using it.”

The problem is hype that burns that hot is hard to sustain. No game, no matter how good, could maintain the intensity of summer 2016. Media attention moved on. The bizarre stories about people falling into ditches whilst catching Pokémon stopped making headlines.

But Niantic’s mistakes accelerated the decline beyond normal drop-off rates. New features and Pokémon types were not added to the game as frequently as they should have, leaving fans feeling bored and unmotivated to continue playing.

The Long Decline

The financial numbers tell the story. In 2017, the game’s revenue started to decline, dropping 50 percent year-on-year. By 2023, Pokémon Go grossed $566.38 million, the lowest earning year since 2017’s $444.75 million.

Of Pokémon Go’s target demographic (18-34 years old), a staggering 70 percent responded saying they had stopped playing. That’s not normal attrition. That’s abandonment.

Controversial decisions didn’t help. The increase in the price of Remote Passes and the limitation on their use contributed to a decline in player participation. Players who’d adapted to pandemic-era features felt betrayed when Niantic tried forcing them back outdoors by removing popular remote options.

The Comeback That Never Quite Came

Pokémon Go didn’t die. Since the initial crash, there have been smatterings of growth as players return and Niantic adds new highly-requested features. The company has continued to generate over $500 million from Pokémon Go each year.

In 2020, the game surpassed $1 billion for the first time. Pandemic changes, ironically, helped. Remote raids let people play from home. Increased spawn rates made the game more accessible. These adaptations brought players back.

But Pokémon Go never reclaimed its cultural dominance. Despite having the lowest number of players in years, 2020 and the first half of 2021 generated revenue the likes of which Pokémon Go hadn’t seen prior. Even with the all-time high of 232 million players in 2016, the game earned less than half of what it did in 2020.

Smaller player base. Higher revenue. The game had evolved into something different. Hardcore players spending more money. Casual players long gone.

The Lesson: Hype Has an Expiry Date

Attrition curves for games show a typical fast loss of users followed by a slower, more gradual decline. The fast initial loss of users comes from those who downloaded the game because it hasn’t cost them anything and give it up just as easily.

Pokémon Go’s mistake wasn’t the natural decline. Every game loses players. The mistake was failing to evolve fast enough to retain the millions who genuinely wanted to keep playing. The rise and fall of Pokemon Go demonstrates what happens when innovation can’t keep pace with user expectations.

The tracking system stayed broken for months. Meaningful content updates came too slowly. Communication with players remained minimal. Gym monopolies drove away new players. The core gameplay loop became stale.

Market saturation, intense competition, and negative user experiences likely contributed to the drop. But those factors were amplified by Niantic’s slow response to obvious problems.

What It All Means

Hype-driven technology has a brutally short shelf life if it can’t evolve. Pokémon Go proved that being everywhere doesn’t mean staying anywhere. The game captured the world’s attention and squandered it by not moving fast enough.

Nearly a decade later, Pokémon Go still exists. It still makes money. It still has dedicated players. But it will never be what it was in summer 2016. That moment is gone. The rise and fall of Pokemon Go serves as a cautionary tale for any technology company banking on viral success alone.

The parks are quieter now. Friends finish their pints. The random crowds at midnight have disappeared. Pokémon Go taught the tech world an expensive lesson: hype gets you in the door. Only evolution keeps you in the house.

The game that promised we’d catch ’em all ended up teaching us something different. You can catch millions of users overnight. Keeping them is the hard part. Studying the rise and fall of Pokemon Go reveals that sustaining momentum requires more than initial excitement—it demands constant innovation and responsiveness to player needs.

Source

  1. Business of Apps. “Pokémon Go Revenue and Usage Statistics (2025).” https://www.businessofapps.com/data/pokemon-go-statistics/
  2. The Conversation. “What went wrong with Pokémon Go? Three lessons from its plummeting player numbers.” https://theconversation.com/what-went-wrong-with-pokemon-go-three-lessons-from-its-plummeting-player-numbers-67135
  3. Dexerto. “Niantic’s own earnings prove Pokemon Go needs to change direction.” https://www.dexerto.com/opinion/niantics-own-earnings-prove-pokemon-go-needs-to-change-direction-1858203/

Ex Nihilo magazine is for entrepreneurs and startups, connecting them with investors and fueling the global entrepreneur movement

About Author

Malvin Simpson

Malvin Christopher Simpson is a Content Specialist at Tokyo Design Studio Australia and contributor to Ex Nihilo Magazine.

Leave a Reply

Your email address will not be published. Required fields are marked *