A Game-Changing Deal in the Industry
Saudi Arabia’s Scopely has officially acquired Niantic’s gaming division in a massive $3.5 billion deal. This move aligns with Saudi Arabia’s growing ambitions to become a global gaming hub.
Niantic, the augmented reality (AR) firm behind the global phenomenon Pokémon Go, has struggled to replicate its 2016 success. Now, the company is pivoting toward geospatial AI innovations, leaving behind its gaming division.
Why Is Niantic Selling?
The decision comes after years of financial struggles for Niantic. Despite Pokémon Go’s ongoing success, the company faced major layoffs in 2022 and 2023 and was forced to cancel several game projects, including Harry Potter: Wizards Unite.
Acknowledging the transition, Ed Wu, who leads the Pokémon Go team at Niantic, reassured fans:
“I won’t say that Pokémon Go will remain the same because it has always been a work in progress. But how we create and evolve it will remain unchanged, and I hope we can make the experience even better.”
What’s Next for Niantic?
Niantic isn’t exiting the tech world completely. Instead, the company is shifting focus to geospatial AI with a new venture, Niantic Spatial.
Under the terms of the deal:
- Niantic will distribute $350M to its equity holders.
- Niantic Spatial will be launched as a separate company, led by Niantic’s CEO, John Hanke.
- The new firm will be backed by $250M in funding—$200M from Niantic and $50M from Scopely.
- Niantic’s existing shareholders will retain stakes in Niantic Spatial.
Saudi Arabia’s Gaming Ambitions
This acquisition is a major step in Saudi Arabia’s plan to dominate the global gaming industry. The Kingdom has already announced $38 billion in investments through its Savvy Games Group (SSG), a subsidiary of its Public Investment Fund (PIF).
Saudi Arabia is positioning itself as a major eSports and gaming hub, with plans to host the Esports World Cup and attract leading gaming companies.
Who is Scopely?
Scopely, a mobile gaming powerhouse, was itself acquired by Savvy Games Group in 2023 for $4.9 billion. The company is behind some of the most successful mobile games, including Monopoly Go, which has generated over $3 billion in revenue.
Beyond Scopely, Savvy Games Group has also invested in Nintendo, where it holds a 7.54% stake. These strategic moves are all part of Saudi Arabia’s broader vision to establish itself as a global leader in gaming and digital entertainment.
What this Scopely acquisition means for the Gaming Industry
With this deal, Scopely strengthens its foothold in mobile gaming, while Niantic shifts toward the future of geospatial AI. Meanwhile, Saudi Arabia continues its aggressive push into gaming, setting the stage for major industry disruptions in the coming years.