Pokémon Go is the most successful augmented reality game since its launch in 2016, and it seems a big change is in the cards for the game. Niantic Inc., the game’s developer, is reportedly in advanced talks to sell its gaming division to Saudi-owned Scopely Inc. for a whopping $3.5 billion. The deal is not yet finalized so take it with a grain of salt. And maybe pray.
If the acquisition goes through, Pokémon Go and other Niantic titles like Ingress and Monster Hunter Now will be under Scopely’s control. As you’d expect, the majority of the community is already preparing for the worst as the fate of the game might be changing hands.
Pokémon Go could be changing hands to a new owner
Niantic was originally a Google subsidiary that became independent in 2015. At the time, Google probably didn’t think anything of it. But Niantic went on to strike gold with Pokémon Go in 2016 and the game has since been the most profitable augmented reality (AR) game ever. So why is it now being reported (via Bloomberg) that the company’s gaming division could be sold to Saudia Arabia-backed Scopely Inc.?
Well, first of all, there’s the fact that replicating the success of Pokémon Go has been challenging. You see the biggest reason why it worked was because of how compatible a franchise like Pokémon is with the concept of a real-time, location-based augmented reality game. And it’s not to say that Niantic hasn’t tried to make similar games.
Bloomberg: Niantic Inc. is in talks to sell its video-game business to Saudi Arabia-controlled Scopely Inc. for about $3.5 billion. Deal could be announced in coming weeks.
Any agreement would involve Pokémon Go as well as other mobile gameshttps://t.co/BdiXPC00nV pic.twitter.com/YPqQblHDTC
— Wario64 (@Wario64) February 19, 2025
The company has faced setbacks, including the shutdown of its Harry Potter: Wizards Unite game in 2022 and staff layoffs in 2023. With the AR market developing slower than anticipated, Niantic has been restructuring its business, making the sale of its gaming division a strategic move to focus on its geospatial data projects.
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Scopely Inc. is the company poised to take over Niantic’s gaming assets and is itself a major mobile game publisher that was acquired by Saudi Arabia’s Savvy Games Group in 2023 for $4.9 billion. The initial responses from players and the community have been mostly negative. Players are criticizing Scopely’s monetary practices and of course, the Saudi involvement.
What is the future of gaming with big moves like this?
Over the last few years, Saudi Arabia has been expanding its footprint in the gaming industry using its Public Investment Fund (PIF) to acquire stakes in major gaming companies. The community hasn’t been quiet about it if you look at the backlash that several developers have faced for aligning with this agenda. The Esports World Cup is a great example of this. But we’re not here to talk controversies.
Savvy Games Group is a subsidiary of PIF that acquired Scopely in 2023 for $4.9 billion as part of this strategy. With Niantic’s potential sale, Saudi Arabia would gain control over Pokémon Go, Pikmin Bloom, and other Niantic titles. It’s a really big move and one that we should expect considering Savvy CEO Brian Ward’s previous statement to Bloomberg about having a “genre-leading” mobile title.
Another key factor in this deal is the involvement of The Pokémon Company. While Niantic developed Pokémon Go, the Pokémon franchise is co-owned by Nintendo, Game Freak, and Creatures Inc. It’s unclear how much control The Pokémon Company would have over any changes Scopely might implement.
This post belongs to FandomWire and first appeared on FandomWire
