Niantic, the developer behind the globally successful augmented reality (AR) game Pokémon GO, announced the sale of its gaming division to Scopely, a major player in mobile gaming, for $3.5 billion.
The transaction includes the rights to Niantic’s popular games, such as Pokémon GO, Pikmin Bloom, and Monster Hunter Now. The deal marks a significant pivot for Niantic, which will now focus on geospatial technology, and an expansion of Scopely’s portfolio into the lucrative AR gaming sector.
Niantic, is the company that hit the jackpot with Pokémon GO back in 2016, turning parks and streets into hunting grounds for virtual critters. Now, fast forward to today: Scopely, known for hits like MONOPOLY GO! and Stumble Guys, is taking over Niantic’s entire gaming lineup.
That includes Pokémon GO (with its 20 million weekly active players), Pikmin Bloom (a 2021 walking game), Monster Hunter Now (an AR title from 2023), and even community tools like Campfire and Wayfarer. Oh, and all the employees working on these games? They’re heading to Scopely’s team, which already boasts 2,300 staff.
Niantic isn’t disappearing. They’re splitting off into a new venture called Niantic Spatial, focusing on real-world 3D maps with a $250 million cash boost ($200 million from Niantic, $50 million from Scopely).
Meanwhile, they’re keeping two smaller games, Ingress Prime and Peridot, under this new entity. It’s like Niantic’s saying, “We’re done chasing Pokémon; let’s map the world instead!”
Why does this matter? Well, $3.5 billion is one of the biggest gaming deals in recent years. Plus, Scopely’s backed by Saudi Arabia’s Public Investment Fund (PIF), which adds a global investment angle that’s hard to ignore.
Let’s rewind a bit. Niantic started as a Google spin-off in 2010, dreaming up augmented reality (AR) games that blend the digital and physical worlds. Pokémon GO was their golden ticket, over 500 million players in its first year, raking in billions.
I remember covering the craze: people wandering into traffic, trespassing, even causing a few fender-benders chasing Pikachu. It was wild! But here’s the rub, Niantic couldn’t quite recapture that magic.
Games like Harry Potter: Wizards Unite flopped, and others, like their NBA and Marvel projects, got axed during the pandemic. Layoffs followed, with hundreds cut in 2022 and 2023.
Today, Pokémon GO still has 30 million monthly active users and pulled in over $1 billion in 2024, according to Niantic. That’s impressive, but its peak of 230 million monthly players in 2016 is a distant memory. Players have grumbled about rising paid content, like pricey event tickets, showing the game’s still a cash cow, but maybe not the cultural juggernaut it once was.
Niantic’s CEO, John Hanke, put it nicely in a statement: “Niantic games have always been a bridge to connect people and inspire exploration, and I am confident they will continue to do both as part of Scopely.” Translation? They’re handing off the gaming torch to focus on something new.
Now, let’s talk Scopely. Founded in Los Angeles in 2011, they’ve built a reputation for addictive mobile games. MONOPOLY GO! alone hit $3 billion in revenue faster than any mobile game ever, and titles like Marvel Strike Force keep the profits rolling.
In 2023, Saudi Arabia’s PIF, through its Savvy Games Group, scooped up Scopely for $4.9 billion as part of a $38 billion push to make the kingdom a gaming hub. Think about that, PIF’s also got stakes in Nintendo, EA, and Activision Blizzard. They’re not messing around!
Scopely’s promising to keep Niantic’s games true to their roots. “Players can expect Niantic games, apps, and events to stay true to their spirit,” they said.
But here’s where it gets juicy, Scopely’s known for squeezing every dime out of its games. Some call their approach “pay-to-win,” with heavy in-app purchases.
Will Pokémon GO see more premium passes or rare Pokémon locked behind paywalls? Fans are already nervous, with posts on X warning they’ll quit if Scopely goes overboard.
The mobile gaming market’s expected to hit $105.7 billion in 2025, per industry reports, with AR games like Pokémon GO driving growth. Niantic’s gaming division still has muscle, 30 million monthly players and that $1 billion in 2024 revenue.
While Scopely takes the games, Niantic’s betting on geolocation tech. Niantic Spatial, led by Hanke, wants to build “real-world 3D maps” using AI and machine learning.
They’ve been dabbling in this already, last year, their Scaniverse app let users model real objects, feeding data to developers. In November 2023, they teased a “large geospatial model” to connect global scenes.
Think Google Maps on steroids, but for AR and AI. With $250 million to play with, they’re not starting small.
This pivot makes sense, Niantic’s roots are in mapping tech from Hanke’s Google days (he helped create Google Earth). But it’s risky. The AR “metaverse” they once hyped never fully materialized, and geospatial AI’s a crowded field.
Still, Hanke’s optimistic, saying this split ensures their games get “long-term support” while they chase a new dream.
So, why should you care? This deal’s a snapshot of where mobile gaming’s heading: big money, big players, and a tug-of-war between profit and player joy. For Saudi Arabia, it’s another step toward gaming dominance, PIF’s flexing its financial muscle globally.
For Niantic, it’s a chance to reinvent itself. And for Pokémon GO fans, it’s a wait-and-see moment, will Scopely keep the magic alive or turn it into MONOPOLY GO! with Poké Balls?
Looking ahead, expect Scopely to roll out updates in 2025, maybe new events or features to test the waters. Niantic Spatial’s mapping tech could pop up in unexpected places, from AR glasses to urban planning.
As for me, I’ll be watching closely, coffee in hand, ready to report how this all shakes out. What do you think, excited or skeptical?
Drop me a line!
