Niantic Labs has sold its gaming division to Saudi Arabia-owned Scopely for $3.5 billion, marking a major shift for the U.S.-based augmented reality (AR) company. Along with the sale, Niantic will distribute $350 million to its equity holders. As part of its new direction, the company is launching Niantic Spatial, which will focus on geospatial AI technology. Niantic’s founder and CEO, John Hanke, will lead this new venture, with $250 million in funding, including $200 million from Niantic and $50 million from Scopely.
Saudi Arabia Expands Gaming Empire with Niantic Acquisition, Strengthening Its Industry Influence
Saudi Arabia has been investing heavily in the gaming industry as part of its long-term strategy to diversify its economy beyond oil. The kingdom’s Savvy Games Group previously acquired Scopely for $4.9 billion and holds stakes in companies like Nintendo. The country has also committed $38 billion to gaming initiatives and launched the Esports World Cup to establish itself as a global gaming powerhouse. This latest deal strengthens Saudi Arabia’s influence in the gaming world.
Niantic’s Pokémon Go Era Ends as Company Moves Away from Gaming After $3.5B Sale
Niantic, best known for Pokémon Go, struggled to replicate its past success and faced challenges during the COVID-19 pandemic, leading to project cancellations and layoffs. Despite this, its gaming division remained profitable, generating $1 billion in revenue last year. The sale to Scopely includes hit games like Pokémon Go, Monster Hunter Now, and Pikmin Bloom, while some titles like Peridot and Ingress will stay with Niantic Spatial. If approved, this acquisition will reinforce Scopely’s position in mobile gaming while Niantic shifts its focus to geospatial AI technology.
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