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A lot do people don't play it as much as they did when it first came out a couple weeks ago, including myself. I don't see kids outside anymore.
I don't think so. I do think that with the glitches, bad servers, and increased difficulty that a bunch of people have lost interest.
Niantic's only hope is to about face and bring back the features they removed, otherwise this game is going to have a short life span regardless of what they do.