Snapchat Maker Snap Suspends Games Business Amid Layoffs

gamerant.com:

Snapchat maker Snap is suspending its gaming business, Snap Games, amid financial turmoil. The social media company disclosed the decision in a recent regulatory filing, framing it as a necessary step in an incoming restructuring that will also see it lay off some 20% of its global workforce, which consisted of nearly 6,400 employees as of June 30.

The Snap Games program was announced at Snap Partner Summit in mid-2019 and is independent of the company's partnerships with mainstream game publishers who occasionally create promotional filters and host exclusive sales on Snapchat. According to Snap's developer pages, over 300 million people played Snap Games to date, which equates to over 90% of the Snapchat user base. A high engagement rate relative to rivaling social media apps has long been Snapchat's main selling point to advertisers, but monetizing it has proven challenging.

Red Dead Redemption 2 Characters Look Ridiculous With Snapchat Filter

In a last week's filing with the US Securities and Exchange Commission, Snap outlined a plan to «substantially reduce or eliminate» all endeavors that aren't direct contributors to its three post-restructuring priorities: user growth, revenue growth, and augmented reality. Apart from its gaming business, Snap Originals, Minis, and Pixy are also on the chopping block. So, no more flying cameras, no more chainsaw-wielding Ryan Reynolds. The company's Voisey and Zenly apps will also be sunset as part of the restructuring.

At least a few more titles are likely to release under the Snap Games umbrella in the near future. The company's gaming division has so far been consistent at introducing new games on a quarterly basis. The latest such creation, Ghost Phone, launched just last month,