The Article Tells The Story of:
- Pokémon Go’s Fate Sealed? Niantic is selling its gaming division, including Pokémon Go, to Saudi-owned Scopely in a shocking $3.5 billion deal.
- Power Shift in Gaming Saudi Arabia tightens its grip on the gaming industry after acquiring stakes in Nintendo, EA, and Activision Blizzard.
- Massive Revenue Behind the Deal Pokémon Go has raked in $7.9 billion since 2016—Scopely aims for long-term domination.
- What’s Next for Niantic? While some games stay, Niantic pivots to AR and mapping tech—leaving its gaming empire behind.
Niantic Sells Gaming Division to Saudi Arabia’s Scopely for $3.5 Billion
Niantic, the company behind Pokémon Go, has announced the sale of its gaming business to Scopely, a Saudi Arabia-owned mobile gaming developer, in a deal worth $3.5 billion. The acquisition includes some of Niantic’s most popular augmented reality (AR) games, such as Pokémon Go, Monster Hunter Now, and Pikmin Bloom. The sale marks a major shift in the gaming industry as Saudi Arabia strengthens its presence in the sector.
Niantic has struggled to replicate the success of Pokémon Go, which took the world by storm in 2016. The game attracted over 500 million players in its first year. However, the company faced challenges during the 2020 pandemic, when global lockdowns significantly impacted player engagement. In an effort to stay afloat, Niantic canceled several projects and laid off more than 300 employees between 2022 and 2023.
CEO John Hanke remains optimistic about the deal. He stated, “Niantic games have always been a bridge to connect people and inspire exploration, and I am confident they will continue to do both as part of Scopely.” He emphasized that the acquisition would provide the necessary resources to ensure that Niantic’s games can endure for future generations.
What Will Happen to Niantic’s AR Games?
If the deal secures regulatory approval, Scopely will gain control over Niantic’s major gaming titles and its supporting social companion apps, such as Campfire and Wayfarer. Scopely also confirmed that it will retain Niantic’s game development team, ensuring continuity in the titles’ future updates and support.
However, not all of Niantic’s projects are part of the acquisition. The AR games Peridot and Ingress, along with the Wayfarer mapping app, will remain under Niantic Spatial’s ownership and development. This suggests that Niantic may be shifting its focus toward AR mapping and spatial computing rather than continuing as a major gaming developer.
Saudi Arabia’s Growing Influence in Gaming
Saudi Arabia has been actively investing in the gaming industry through its Public Investment Fund (PIF). The PIF has previously acquired stakes in major gaming companies, including Nintendo, Activision Blizzard, and Electronic Arts (EA). In 2021, Saudi Arabia established Savvy Games Group, which later purchased Monopoly Go! developer Scopely for $4.9 billion in 2023. The Niantic acquisition is seen as the next major move in the country’s gaming strategy.
Scopely’s Chief Revenue Officer, Tim O’Brien, hinted at this deal in 2024, describing an upcoming “megadeal” involving a major global gaming franchise generating at least $1 billion in revenue. While Niantic does not publicly disclose its earnings, Scopely has revealed that Niantic’s gaming division generated around $1 billion in revenue last year. Pokémon Go alone is estimated to have earned $7.9 billion since its launch.
The deal raises questions about the future of Pokémon Go and other AR gaming experiences. Under Scopely’s ownership, players may see new updates, monetization strategies, or expansions into new markets. For now, the gaming industry watches closely as Saudi Arabia continues its rapid expansion in the sector.
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