Scopely Inc., a gaming company backed by Saudi Arabia’s sovereign wealth fund, has acquired Niantic Inc.’s gaming division, including Pokémon Go, for $3.5 billion.
The deal, funded by Savvy Games Group, a subsidiary of the Public Investment Fund (PIF), includes Pikmin Bloom and Monster Hunter Now. Scopely will also take over the development teams working on these games. The company confirmed the acquisition on Wednesday, following an earlier Bloomberg News report.
Niantic’s mobile games encourage outdoor exploration through augmented reality (AR) and location-based rewards. In 2023, its gaming division generated over $1 billion from 30 million monthly active users, according to Scopely. While Pokémon Go remains a massive success, many of Niantic’s other AR titles struggled to maintain a strong player base. Some were eventually shut down.
Niantic will retain its mapping technology business under the new name Niantic Spatial. CEO John Hanke will lead the company as it focuses on high-fidelity spatial mapping. The company stated that its technology will support industries such as manufacturing, logistics, education, warehousing, and tourism.
Niantic Spatial has secured $250 million in funding, with $200 million from Niantic and $50 million from Scopely. The company will keep other AR titles, including Ingress Prime and Peridot, rather than transferring them to Scopely.
Niantic spun off from Alphabet Inc. (Google) in 2015. Before founding the company, John Hanke played a key role in satellite mapping and led Google’s Geo division, which developed Google Maps and Google Earth.
Scopely itself changed ownership in 2023 when Savvy Games Group acquired it for $4.9 billion. The deal was part of Saudi Arabia’s $38 billion gaming initiative. The Kingdom continues to invest heavily in video games, aiming to become a global hub for game development and esports, with PIF leading the charge.
With this acquisition, Saudi Arabia strengthens its influence in the gaming industry, while Niantic pivots toward spatial computing and mapping innovation.
