“Saudi Arabia Acquires Pokemon Drag and Niantic’s Gaming Ventures”

Image credit: Niantic / Scopely

Scopely, the mobile developer owned by Saudi state-supported investor Savvy Games Group, has consented to acquire Pokemon Go and the entirety of Niantic’s gaming division for $3.5 billion.

This agreement will enable Scopely to take control of Niantic’s internal development teams and key franchises including Pokemon Go, Pikmin Bloom, and Monster Hunter Now. It will also encompass companion apps and services such as Campfire and Wayfarer.

Scopely stated this would empower Niantic’s development teams to keep pursuing their “ambitious plans” under the guidance of new leaders Kei Kawai and Ed Wu.

“Few games globally have achieved the magnitude and endurance of Pokémon Go, which surpassed 100 million players just last year. The experience also stands out for its unique ability to promote real-life interactions, with Pokémon Go live events drawing millions of participants,” remarked Scopely board member and chief revenue officer, Tim O’Brien, in a press release.

“After spending time with the Niantic team, it quickly became apparent that this organization shares our drive to deliver industry-leading results and outstanding player experiences. We are excited for a bright future ahead.”

Pokemon Go leader Ed Wu remarked that the acquisition signifies a “positive advancement” and will continue to support the development team’s “long-term commitment” to enhancing the globally popular AR game, which boasted over 100 million players in 2024.

He stated that the team will operate independently under Scopely and confirmed they will maintain collaboration with The Pokemon Company.

“I believe that Pokémon Go can still flourish with Scopely’s distinct long-term focus on game development. Scopely’s position as a private entity also means we can concentrate on what’s best for you, our Trainers, in the long run,” he mentioned in a message to players.

“We believe that prioritizing short-term gains at the expense of our long-term mission would be counterproductive and self-defeating. Each interaction I’ve had with Scopely leaders has reinforced that we are in complete agreement that the scale, durability, and most importantly, the authentic community, of Pokémon Go makes it truly special. We are united in preserving that.”

Niantic to refocus on geospatial AI industry after divesting game division

For Niantic, the arrangement represents an opportunity to refocus on the geospatial AI industry with the establishment of a new company, Niantic Spatial Inc.

The offshoot will be led by Niantic CEO and founder John Hanke. This will continue to support various Niantic-owned AR titles such as Ingress Prime and Peridot while working to develop spatial intelligence tools that help individuals “better comprehend, navigate, and interact with the physical world.”

Niantic Spatial will be financed with $250 million of funding, including $200 million from Niantic’s balance sheet and a $50 million investment from Scopely.

As previously mentioned, this arrangement signifies a significant investment for Scopely’s parent company Savvy Games Group.

Savvy acquired Scopely for $4.9 billion in July 2023 as part of its proclaimed mission to expand the global gaming industry. The multinational investment firm is wholly owned by Saudi Arabia’s Public Investment Fund (PIF), a state-backed entity led by Saudi Crown Prince Mohammad bin Salman Al-Saud (MBS).

PIF has previously invested in several notable companies including Nintendo, EA, Take-Two Interactive, and Embracer Group.

These investments have drawn scrutiny due to Saudi Arabia’s controversial human rights record under the leadership of MBS, who has been accused of permitting activists to be tortured and faced allegations regarding potential links to the murder of Washington Post journalist Jamal Khashoggi.

Scopely’s acquisition of Niantic is expected to finalize in 2025 but remains subject to regulatory scrutiny.

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