In a move that has sent ripples through the gaming and tech industries, Niantic, the San Francisco-based developer behind the global phenomenon Pokémon Go, has confirmed its acquisition by Scopely, a major mobile gaming company backed by Saudi Arabia’s Public Investment Fund (PIF). The deal, announced Thursday, marks a pivotal shift for Niantic as it seeks to navigate an evolving augmented reality (AR) landscape and scale its ambitious real-world gaming projects.
Scopely, known for titles like Marvel Strike Force and Star Trek™ Fleet Command, has aggressively expanded its portfolio in recent years, with Saudi Arabia’s sovereign wealth fund acquiring a significant stake in the company in 2020. The acquisition of Niantic underscores Scopely’s push into AR and location-based gaming—a sector Niantic has dominated since Pokémon Go’s 2016 launch, which amassed over 1 billion downloads and reshaped how players interact with the physical world through technology.
A New Chapter for Niantic
In a blog post titled “Niantic’s Next Chapter,” CEO John Hanke framed the sale as a strategic partnership rather than a retreat. “Joining forces with Scopely allows us to leverage their expertise in live operations and player engagement while staying true to our mission of encouraging exploration and social connection,” he wrote. Hanke emphasized that Niantic will retain creative control over its existing games, including Pokémon Go, Pikmin Bloom,
and Monster Hunter Now, while gaining access to Scopely’s resources to accelerate new projects.
Financial terms of the deal remain undisclosed, though industry analysts speculate the agreement values Niantic in the multibillion-dollar range, given Pokémon Go’s enduring profitability—the game has generated over $12 billion in lifetime revenue.
Strategic Synergies and Challenges
The acquisition comes at a critical juncture for Niantic, which faced headwinds post-pandemic as player activity waned and metaverse hype cooled. The company laid off 230 employees in 2023 and shuttered projects like NBA All-World amid restructuring. Scopely’s infrastructure and financial backing could provide stability, enabling Niantic to refine its AR platform and invest in emerging technologies like mixed-reality headsets.
However, the sale has sparked debate among fans and industry watchers. While some applaud the potential for improved game features and global reach, others question how Scopely’s Saudi ties might influence Niantic’s operations. Saudi Arabia’s PIF has increasingly invested in gaming—including stakes in Activision Blizzard, EA, and Nintendo—as part of its Vision 2030 economic diversification plan. Critics have raised concerns about data privacy and cultural alignment, though Scopely has historically operated independently of its investors.
Community Reactions and the Road Ahead
On social media, Pokémon Go players expressed mixed emotions. “I just hope this doesn’t mean more microtransactions,” tweeted one user, while another speculated, “Maybe now we’ll finally get that long-awaited player-vs-player mode.” Niantic has sought to reassure fans, pledging that core gameplay and community events will remain unchanged.
Looking ahead, Niantic teased upcoming collaborations with Scopely’s studios and hinted at “bold new IPs” in development. For now, all eyes are on how this partnership will shape the future of AR gaming—and whether the magic of Pokémon Go can evolve under its new ownership.
As Hanke concluded in his blog post, “Our journey is just beginning.”
This story is developing. Updates to follow.