Last month, Pokemon Go released its first "major update" releasing 80+ new Pokemon into the game and adding several other new features like new evolutionary items and berries. While fans came back to the game in droves, it appears that the new update didn't result in new revenue like Niantic may have hoped.
According to the app insight site Wandera, nearly 12 million players logged into Pokemon Go after the new update went live on February 16th. That's a major spike considering that the game's daily average users had settled to around 7.5 million users after its initial peak. While the boost in traffic didn't come anywhere close to Pokemon Go's peak users back in July 2016, it still represented the largest number of players in nearly 6 months. Wandera also reported that Pokemon Go's data usage per player was way up, even compared to the game's initial peak. This indicates that Pokemon Go players were more engaged than ever, a dedicated (yet dwindling) userbase for the game.
However, Sensor Tower released their own findings about the recent update. While the game brought back players, SensorTower's data indicated that they didn't spend nearly as much as they did for past mini-events. SensorTower estimates that the new update generated $1.6 million in daily revenue, which is higher than the Valentines and Thanksgiving events but worse than the Christmas and Halloween events.
So, why didn't Pokemon Go's big update generate more daily income? Well, unlike the holiday events, Gen 2 is a permanent change. Players don't have a limited window to catch the new Pokemon, so what motivation would they have to break the bank buying PokeBalls or Incubators? In addition, it doesn't seem like players were very interested in the new purchasable clothing items.
The real test will be whether the update can continue generating anywhere close to that $1.6 million per day in the long run. If the new update helps retain even a portion of that boost of income, Niantic will probably consider the event a success.