Niantic Labs, the company behind Pokémon Go, has announced the sale of its gaming division to Saudi-owned Scopely for $3.5 billion as it shifts its focus toward geospatial technology.
The deal, unveiled on Wednesday, is part of Saudi Arabia’s broader strategy to establish itself as a global gaming hub. The kingdom’s sovereign wealth fund, through its subsidiary Savvy Games, previously acquired Scopely for $4.9 billion in 2023 as part of efforts to diversify its economy beyond fossil fuels.
Niantic’s New Direction: Geospatial AI
Alongside the sale, Niantic will distribute an additional $350 million to its equity holders, bringing the total deal value to $3.85 billion. The company will also spin off its geospatial artificial intelligence (AI) division into a new firm called Niantic Spatial, which will be led by Niantic’s founder and CEO, John Hanke.
Niantic Spatial will be backed by $250 million in funding—$200 million from Niantic’s balance sheet and an additional $50 million from Scopely. All of Niantic’s original investors will retain their stakes in the newly formed company.
Scopely Acquires Popular AR Gaming Titles
Under the acquisition, Scopely will take control of Niantic’s gaming portfolio, which includes:
- Pokémon GO – The 2016 hit with over 20 million weekly active players.
- Pikmin Bloom – A walking-based AR game released in 2021.
- Monster Hunter Now – A 2023 AR game inspired by the popular Monster Hunter franchise.
- Campfire – A community interaction platform.
- Wayfarer – A tool allowing players to contribute new locations to Niantic’s AR map.
All Niantic employees working on these games will transition to Scopely, which currently employs 2,300 people.
Challenges and Declining Engagement
Despite Pokémon Go’s continued popularity—it still attracts 30 million monthly players—Niantic has struggled to replicate its massive success with other titles. Player complaints about rising in-game costs and paywalled content have also increased in recent months.
Since the pandemic, Niantic has canceled several high-profile projects, including NBA, Harry Potter, and Marvel-themed games, while laying off hundreds of employees.
Saudi Arabia’s Growing Gaming Empire
Saudi Arabia’s Public Investment Fund (PIF) continues to expand its influence in the gaming sector, investing billions into the industry. The acquisition of Niantic’s gaming division is another step toward its vision of becoming a leading force in global gaming.
Despite launching nearly a decade ago, Pokémon Go remains one of the highest-grossing mobile games worldwide, proving the continued demand for AR-based gaming experiences. With this acquisition, Scopely is set to capitalize on Niantic’s established player base while Niantic itself pivots toward its next frontier—geospatial AI.