Pokémon Go
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Sami Khan began his work in the startup world by marketing mobile-based investment services like Acorns.
Now the marketer who helped grow that business to a nearly $1 billion valuation is turning his attention to location-based gaming in the hopes that he can take on leading contender Niantic with a faster, more flexible and fan-driven approach to game development with his new startup, Cerberus Interactive.
Khan’s pitch is that he’s taking the skills he honed building up services like Acorns or the browser extension for bargain hunters, Honey, to game development to make games more viral from their inception.
“The biggest thing is how do you de-risk what is perceived as a hit-driven industry?,” Khan asks. “Games are closer to digital apps than back in the days of the console and companies should ship it like an e-commerce concept… If adoption of the game is going to be the decision factor of whether a game fails or succeeds… why isn’t the adoption of the game tested before the title is built or while the game is being conceived?”
So for his first foray into gaming, Khan is combining a crowdsourced approach to the development of the game and applying it to what many people think is gaming’s next big frontier — the location-based game phenomenon that hit its stride with Niantic’s Pokémon GO.
“Right now in location-based games you have the behemoth which is Niantic,” says Khan. “Right now the gaming industry looks at location-based games as its own sub genre. But when we look at location-based games, we believe that location-based games have an aspect that it is a game mechanic within other games.”
The first game that Cerberus is developing is a base-building simulator akin to a title like “Age of Empires,” but based on real-world locations. “Simulation games or casual games with location built in will have a bonus or an advantage over the stationary games that we play today,” says Khan.
The “Atlas Empires” title that Cerberus is currently developing is being made in concert with the gamers who might want to play it. So far, an undisclosed number of customers are already paying to have a say in certain aspects of the game’s development — kind of like a premier tier within a crowdfunding campaign.
Khan, a New Orleans native who splits his time between Los Angeles and Austin, has enlisted some marquee investors in his bid to challenge both the traditional ways in which games have been developed and the current industry leader.
Strategic investor MobilityWare has signed on to back the company along with individual investors like Steve Huffman, the co-founder and chief executive of Reddit, and Blake Chandler, the chief business officer of the runaway social network hit, TikTok.
Khan traces his love of games to his time visiting his cousins in Bangladesh and playing “Prince of Persia” on an early Toshiba laptop. “I remember sitting around the computer, watching my oldest cousin play because my dad didn’t want any of the kids touching the laptop,” Khan says.
So far the beta version of “Atlas Empires” has had 50,000 downloads and has about 1,000 daily players, Khan says. The commercial version of the game is expected to go live in the first quarter of 2020, says Khan.
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Just shy of three years ago, Pokémon GO took over the world. Players filled the sidewalks, and crowds of trainers flooded parks and landmarks. Anywhere you looked, people were throwing Pokéballs and chasing Snorlax.
As the game grew, so did the company behind it. Niantic had started its life as an experimental “lab” within Google — an effort on Google’s part to keep the team’s founder, John Hanke, from parting ways to start his own thing. In the months surrounding GO’s launch, Niantic’s team shrank dramatically, spun out of Google, and then rapidly expanded… all while trying to keep GO’s servers from buckling under demand and to keep this massive influx of players happy. Want to know more about the company’s story so far? Check out the Niantic EC-1 on ExtraCrunch here.
Now Niantic is back with its next title, Harry Potter: Wizards Unite. Built in collaboration with WB Games, it’s a reimagining of Pokémon GO’s real-world, location-based gaming concept through the lens of JK Rowling’s Harry Potter universe.
I got a chance to catch up with John Hanke for a few minutes earlier this week — just ahead of the game’s US/UK launch this morning. We talked about how they prepared for this game’s launch, how it’s built upon a platform they’ve been developing across their other titles for years, and how Niantic’s partnership with WB Games works creatively and financially.

Greg Kumparak: Can you tell me a bit about how all this came to be?
John Hanke: Yeah, you know.. we did Ingress first, and we were thinking about other projects we could build. Pokémon was one that came up early, so we jumped on that — but the other one that was always there from the beginning, of the projects we wanted to do, was Harry Potter. I mean, it’s universally beloved. My kids love the books and movies, so it’s something I always wanted to do.
Like Pokémon, it was an IP we felt was a great fit for [augmented reality]. That line between the “muggle” world and the “magic” world was paper thin in the fiction, so imagining breaking through that fourth wall and experiencing that magic through AR seemed like a great way to use the technology to fulfill an awesome fan fantasy.
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Well, here’s a bit of surprise news this evening: At some point in the future, Pokémon GO is going to wrap the player’s sleep habits into the gameplay.
It’ll come as part of a wider initiative by The Pokémon Company to — as CEO Tsunekazu Ishihara put it in a press conference this evening — “turn sleep into entertainment.” Which… well, we’ll see how that goes.
Niantic CEO John Hanke took the stage at the press conference for a moment, but didn’t really offer much in the way of details. Said Hanke:
Niantic pioneered a new kind of gaming by turning the whole world into a gameboard, where we can all play and explore. By creating a new way to see the world and an incentive to go outside and exercise, we hoped to encourage a healthy lifestyle and to make a positive impact on our players and on the world. We’re delighted to be working with The Pokémon Company on their efforts to encourage another part of a healthy lifestyle: getting a good night’s rest.
At Niantic, we love exploring the world on foot. And that can’t happen unless we have the energy to embark on these adventures. We’re excited to find ways to reward good sleep habits in Pokémon GO as part of a healthy lifestyle. You’ll be hearing more from us on this in the future.
Ishihara also announced that The Pokémon Company is working with SELECT BUTTON (the company behind the 2017 mobile title Magikarp Jump) to make a separate game called Pokémon SLEEP. Next to no details on that one yet, though, besides a launch window of sometime in 2020 and the logo:

All of it will tap a just-announced device called Pokémon GO+ Plus (Yeah. Two plusses, one written. Go Plus Plus.) It’s a follow-up to the original GO+, which was built primarily to let you play Pokémon GO without actually looking at your phone’s screen. The GO Plus Plus will do everything the GO+ did (letting you tap a button to spin Pokéstops, or catch nearby Pokémon) but also has a built-in accelerometer allowing it to be laid on your bed to track sleep habits and send ’em back to your phone via Bluetooth.

And here’s a screenshot of a video that played alongside the announcement, showing the device as it’s meant to be used:

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Greetings from Seattle, the land of Amazon, Microsoft, two of the world’s richest men and some startups.
I’m always surprised the Seattle startup ecosystem hasn’t grown to compete with the likes of Silicon Valley — or at least Boston and New York City — since the dot-com boom. Today, it’s the strongest it’s been due to the successes of companies like the newly minted unicorn Outreach, trucking business Convoy and, of course, the dog walking startup Rover. But the city still lags behind, failing to adopt the culture of entrepreneurship that defines San Francisco.
I spent a lot of time wondering why it hasn’t reached its full potential. Is it because Microsoft and Amazon pay their employees so well they don’t have the same urge to build something from the ground up? Is it a lack of access to capital? Is the city not attracting top talent? If you have thoughts, send them my way.
“We think part of the issue is a lack of capital and a lack of help,” Rover and Pioneer Square Labs co-founder Greg Gottesman told TechCrunch earlier this year. “If we can provide a little bit of both of those things, we can really put Seattle where it deserves to be, should be and will be.”
Despite its shortcomings, there is still some action in the city I want to highlight this week. A same-day delivery business, Dolly, is on the rise. The startup told me on Thursday it had raised a $7.5 million round from Unlock Venture Partners, Maveron and Jeff Wilke, the chief executive officer of Amazon Worldwide Consumer. Maveron, if you remember, is the VC fund co-founded by Starbucks founder Howard Schultz.
In other Seattle news, Madrona Venture Group, a well-regarded fund, raised an additional $100 million this week. Typically, Madrona focuses on companies based in the Pacific Northwest, but this fund will deploy capital throughout the entire U.S. Hmmm, that’s not necessarily a good sign for Seattle founders, but great progress for the ecosystem nonetheless.
If you’re interested in learning more about Seattle tech, I’ve covered it a bit because it’s my hometown! Start with this story, which dives deep into a Seattle accelerator that’s working hard to encourage entrepreneurship in the city. Alright, on to other news.
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WeWork: The co-working giant now known as The We Company submitted confidential IPO documents to the SEC, the company confirmed in a press release Monday. Is this the next massive startup win or a house of cards waiting to be toppled by the glare of the public markets? TechCrunch’s Danny Crichton investigates.
Slack: The business is in its final steps toward a much-anticipated direct listing, with one source telling TechCrunch the listing will be complete within 45 days. The WSJ reported this week that Slack will make an online presentation to potential shareholders on May 13. This week, we dug deep into Slack’s S-1 and decided to evaluate just how well the tech press, us included, did in covering the company. For the most part, the tech press did decently well, except for one curious, $162 million gap.
Uber: Finally! That ride-hailing company is going public next week. That latest news? Uber co-founder Travis Kalanick won’t be ringing the opening bell. Uber would not be where it is today without Kalanick, but him being there would surely be a reminder of Uber’s rocky past.
Beyond Meat: Shares of the company surged up 135 percent in their market opener last week, valuing the company as high as $3.52 billion. Volatility was so high on the company’s stock that the Nasdaq had to pause trading of “BYND” shares.
Ofo has run into its fair share of issues, laying off hundreds of workers, shutting down its international division and more. Now, you can buy a piece of the startup’s history.
Now you can buy a piece of startup history… Ofo bikes for ~$60 https://t.co/LLJbDOXm0C
— Jon Russell (@jonrussell) April 29, 2019
In other micro-mobility news, Lyft’s head of scooter & bikes Liam O’Connor, who was hired to help transportation company Lyft build its bike and scooter operations, has left after seven months with the newly-public company. TechCrunch’s Ingrid Lunden has the scoop. Plus, Bird, the electric scooter unicorn doing its best to overcome regulatory barriers, has made its way back to San Francisco. Bird is using its business license in San Francisco to introduce monthly personal rentals in the city. The program enables people to rent a scooter for $24.99 a month with no cap on the number of rides. We’ll how that goes.
For some reason, people are giving Magic Leap more money. The company has secured another $280 million in a deal with Japan’s largest mobile operator, Docomo. Do you know what that means? The developer fo AR/VR headsets has raised a total of $2.6 billion. We’re just as confused as you.
Brand new venture capital funds:
Unshackled Ventures raised $20 million.
Exclusive: @UnshackledVC has a new $20M pre-seed fund to invest only in immigrants. Why? Because immigrants are “inherently more entrepreneurial:” https://t.co/ZLiZ1UczJV
— Kate Clark (@KateClarkTweets) May 2, 2019
Jungle Ventures closed on $175 million.
And Toyota AI Ventures launched a $100 million fund.
I have the inside story on Menlo Ventures early Uber stake and TechCrunch’s Connie Loizos goes deep with early Uber backer Bradley Tusk.
This week, we offer TechCrunch Extra Crunch subscribers exclusive tips on building extraordinary teams. Plus, the final piece in TechCrunch’s Greg Kumparak’s series on Niantic, the fast-growing developer of Pokemon Go. If you recall, we’ve captured much of Niantic’s ongoing story in the first three parts of our EC-1, from its beginnings as an “entrepreneurial lab” within Google, to its spin-out as an independent company and the launch of Pokémon GO, to its ongoing focus on becoming a platform for others to build augmented reality products upon.
If you enjoy this newsletter, be sure to check out TechCrunch’s venture-focused podcast, Equity. In this week’s episode, available here, Crunchbase News editor-in-chief Alex Wilhelm and TechCrunch’s Danny Crichton chat about updates at the Vision Fund, Cheddar’s big exit and more of this week’s headlines.
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We’ve captured much of Niantic’s ongoing story in the first three parts of our EC-1, from its beginnings as an “entrepreneurial lab” within Google, to its spin-out as an independent company and the launch of Pokémon GO, to its ongoing focus on becoming a platform for others to build augmented reality products upon.
It’s not an origin story that serves as an easily replicable blueprint — but if we zoom out a bit, what’s to be learned?
A few key themes stuck with me as I researched Niantic’s story so far. Some of them – like the challenges involved with moving millions of users around the real world – are unique to this new augmented reality that Niantic is helping to create. Others – like that scaling is damned hard – are well-understood startup norms, but interesting to see from the perspective of an experienced team dealing with a product launch that went from zero to 100 real quick.
The reading time for this article is 21 minutes (5,125 words).
Everything Niantic has built so far is an evolution of what the team had built before it. Each major step on Niantic’s path has a clear footprint that precedes it; a chunk of DNA that proved advantageous, and is carried along into the next thing.
Looking back, it’s a cycle we can see play out on repeat: build a thing, identify what works about it, trim the extra bits, then build a new thing from that foundation.
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What is Niantic? If they recognize the name, most people would rightly tell you it’s a company that makes mobile games, like Pokémon GO, or Ingress, or Harry Potter: Wizards Unite.
But no one at Niantic really seems to box it up as a mobile gaming company. Making these games is a big part of what the company does, yes, but the games are part of a bigger picture: they are a springboard, a place to figure out the constraints of what they can do with augmented reality today, and to figure out how to build the tech that moves it forward. Niantic wants to wrap their learnings back into a platform upon which others can build their own AR products, be it games or something else. And they want to be ready for whatever comes after smartphones.
Niantic is a bet on augmented reality becoming more and more a part of our lives; when that happens, they want to be the company that powers it.
This is Part 3 of our EC-1 series on Niantic, looking at its past, present, and potential future. You can find Part 1 here and Part 2 here. The reading time for this article is 24 minutes (6,050 words)
After the absurd launch of Pokémon GO, everyone wanted a piece of the AR pie. Niantic got more pitches than they could take on, I’m told, as rights holders big and small reached out to see if the company might build something with their IP or franchise.
But Niantic couldn’t build it all. From art, to audio, to even just thinking up new gameplay mechanics, each game or project they took on would require a mountain of resources. What if they focused on letting these other companies build these sorts of things themselves?
That’s the idea behind Niantic’s Real World Platform. This platform is a key part of Niantic’s game plan moving forward, with the company having as many people working on the platform as it has on its marquee money maker, Pokémon GO.
There are tons of pieces that go into making things like GO or Ingress, and Niantic has spent the better part of the last decade figuring out how to make them all fit together. They’ve built the core engine that powers the games and, after a bumpy start with Pokémon GO’s launch, figured out how to scale it to hundreds of millions of users around the world. They’ve put considerable work into figuring out how to detect cheaters and spoofers and give them the boot. They’ve built a social layer, with systems like friendships and trade. They’ve already amassed that real-world location data that proved so challenging back when it was building Field Trip, with all of those real-world points of interest that now serve as portals and Pokéstops.
Niantic could help other companies with real-world events, too. That might seem funny after the mess that was the first Pokémon GO Fest (as detailed in Part II). But Niantic turned around, went back to the same city the next year, and pulled it off. That experience — that battle-testing — is valuable. Meanwhile, the company has pulled off countless huge Ingress events, and a number of Pokémon GO side events called “Safari Zones.” CTO Phil Keslin confirmed to me that event management is planned as part of the platform offering.
As Niantic builds new tech — like, say, more advanced AR or faster ways to sync AR experiences between devices — it’ll all get rolled into the platform. With each problem they solve, the platform offering would grow.
But first they need to prove that there’s a platform to stand on.
Niantic’s platform, as it exists today, is the result of years of building their own games. It’s the collection of tools they’ve built and rebuilt along the way, and that already powers Ingress Prime and Pokémon GO. But to prove itself as a platform company, Niantic needs to show that they can do it again. That they can take these engines, these tools, and, working with another team, use them for something new.
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In just a few years, Niantic has evolved from internal side project into an independent industry trailblazer. Having reached tremendous scale in such a short period of time, Niantic acts as a poignant crash course for founders and company builders. As our EC-1 deep-dive into the company shows, lessons from the team’s experience building the Niantic’s product offering remain just as fresh as painful flashbacks to the problems encountered along the way.
As we did for our Patreon EC-1, we’ve poured through every analysis we could find on Niantic and have compiled a supplemental list of resources and readings that are particularly useful for getting up to speed on the company.
Reading time for this article is about 9.5 minutes. It is part of the Extra Crunch EC-1 on Niantic. Feature illustration by Bryce Durbin / TechCrunch.
Google-Incubated Niantic, Maker of Ingress, Stepping Out on Its Own | August 2015 | In August of 2015, Niantic announced that it would spin out from Google and become an independent company. As discussed in WSJ’s coverage of the news, Niantic looked at the spin out as a way to accelerate growth and collaborate with the broader entertainment ecosystem.
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Early on in Pokémon GO, you’re asked to make a decision: Which team do you want to be on? Instinct (Yellow)? Valor (Red)? Mystic (Blue)?
The question comes a bit out of the blue. Especially amongst those who started early and have stuck with the game, it’s not uncommon to hear people grumble about how they wish they’d chosen differently. But once you choose, it’s final; changing teams means making a whole new account and starting the grind from Level 1. Well, until now.
Pokémon GO will soon let you change your team by way of an in-game “Team Medallion” item. Realizing that there are too many Mystic in your area and want to mix it up a bit? You can switch to Valor. Are most of your friends Instinct and you want to help them hold gyms? You can.
But there are catches: It’ll cost money, and you can only do it once a year. It’ll cost you 1,000 Pokécoins — that’s the in-game currency, (slowly) obtainable by holding in-game locations or in exchange for real money via in-app purchase. A pack of 1,200 coins currently goes for $10, so 1,000 coins works out to a little over $8.
As for why there’s a once-per-year cap? It helps make sure people have some degree of loyalty to their chosen teams… but it also helps maintain the game’s mechanics. There are some advantages to playing alongside members of your team — stat boosts in the big group boss battles (or “Raids”), a few extra Pokéballs when your team does the most damage in said raids, etc. — and letting people change too much might screw that up a bit.
This is the latest in a streak of recent additions meant to fulfill longstanding requests from the playerbase, and perhaps respark the interest of some players who moved on. They added trading (a staple of the main series) in June of last year, and player-vs-player battles (another staple) in December. App Annie says the game is currently the 67th most popular title in the iOS app store.
Niantic says the team medallion should roll out on February 26th.
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Two and a half years after launch, Pokémon GO is at last getting player-versus-player battling.
If you’ve already had your fun with GO and moved on, that headline is probably all you need to know — it’s either enough to re-spark your interest, or not.
But if you’re still polishing up that Pokédex, hatchin’ eggs and raiding every weekend, you’re probably itching for a few more details. Good news! I got to run through a few battles late last week, and I noted damn near everything that was mentioned.
If you’re not already friends with a potential opponent, you’ll need to scan a QR code from the other player’s screen to initiate a battle. If you’re ultra friends or best friends, you can battle remotely.For anyone hoping that GO’s eventual battle system would be modeled after the battles of the main series, this… isn’t that. Rather than a turn-by-turn back and forth, battling in GO feels closer to what players might’ve grown accustomed to when taking down a gym or participating in a raid. New mechanics, like the aforementioned protect shields, help to make it feel a bit more strategic and less like blindly tapping the screen until something happens — but after 20-something years of Pokémon games, any changes are bound to be a point of heated debate.
With that said (and with the disclaimer that I’ve only had a few battles so far) I’d say I’m… intrigued. It certainly won’t replace the main series battling system in anyone’s heart, but it’s a solid take on a system that works for casual players while still giving them reason to better learn which Pokémon are strong/weak against each other, which move sets are most effective, etc. It’s an intentionally casual battle system for what is an intentionally casual game. Don’t like it enough to take the time to battle a friend? Battle an AI trainer instead, get your rewards, and be done with it. Want to swing the other way and get super into it and become notorious in your neighborhood for being tough to beat? You can do that too, and the gameplay impact is about the same.
I appreciate that they’re allowing friends to battle remotely (once they’ve reached the ultra/best friend tiers). It’s a bit of a departure for this game, which generally requires you to be on-location and face-to-face for nearly everything else. But with many Pokémon GO players being new to the series, remote battling lets them get in more battling practice against an actual human than an exclusively in-person system might.
As usual, Niantic is being a bit ambiguous about when this’ll roll out, saying only that it’ll roll out “later this month” — which, generally, means as soon as they’re able to flip all the switches, squash the last-minute bugs and get the necessary updates through the App Store. From what I’m hearing, and like many of the recent GO feature releases, I’d expect it to go live for higher-level players first.
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Two and a half years after the launch of Pokémon GO, it’s still missing one major staple of the main series games: player versus player battling.
That’s about to change.
In a series of teaser tweets this morning, the company confirmed that the battle system is on the way, noting only that it’s “coming soon.”
Hmm…what’s this?
pic.twitter.com/EyCRUeVINd
— Pokémon GO (@PokemonGoApp) November 30, 2018
— Pokémon GO (@PokemonGoApp) November 30, 2018
— Pokémon GO (@PokemonGoApp) November 30, 2018
Get prepared… Trainer Battles are coming soon to Pokémon GO
#GOBattle pic.twitter.com/AUWyhNGlT7
— Pokémon GO (@PokemonGoApp) November 30, 2018
Battling is the feature perhaps most demanded by the player base — particularly after the other oh-so-demanded feature, trading, was finally added around six months ago. While players have long been able to battle Pokémon stored in gyms, or work together to take down bigger/badder Pokémon that show up in raids, there’s never been the sort of real-time, head-to-head battling system for which the series is so well-known.
In August of this year, a rep for Niantic mentioned that their goal was to get it out by the end of the year. Given these tweets, it’s looking like that’ll happen.
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