Scopely, the Saudi-owned mobile gaming giant behind the hit game Monopoly Go!, has agreed to acquire Pokémon Go and several other apps from its creator, Niantic, in a $3.5 billion deal. This acquisition marks a significant shift for Niantic, which is pivoting its focus toward artificial intelligence.
Launched in 2016, Pokémon Go became an overnight sensation, pioneering a new genre of augmented reality (AR) games that overlay digital characters onto real-world environments through smartphone cameras. The game remains one of the highest-grossing mobile titles, with 30 million monthly players generating over $1 billion in revenue last year.
This deal grants Scopely access to Niantic's extensive gaming audience, adding to its already massive player base of over 500 million users. The acquisition follows Scopely’s own $4.9 billion purchase by Saudi Arabia’s Savvy Games Group in 2023. Monopoly Go! was the second highest-grossing mobile game last year, generating around $2.2 billion in player spending, according to AppMagic.
"We are deeply inspired by what the Niantic team has built over the past decade, delivering innovative experiences that captivate a vast global audience and encourage real-world interactions," said Tim O’Brien, Chief Revenue Officer at Scopely. "Few games in the world have achieved the scale and longevity of Pokémon Go, which saw over 100 million players last year."
San Francisco-based Niantic, which spun out of Google’s mapping division in 2015 and was valued at $9 billion in 2021, is selling its gaming business to Scopely while simultaneously establishing a new division focused on geospatial AI. This new unit, named Niantic Spatial, aims to develop next-generation mapping technology based on real-world images and location data collected by players.
John Hanke, Niantic’s founder and CEO, highlighted the company’s new direction, stating that Niantic Spatial is working on AI-driven maps that help machines understand the real world—technology applicable to smart glasses, robotics, and beyond. "Niantic is building models that will help AI move beyond screens and into real-world environments," he said.
As part of the deal, Scopely will continue sharing some player data with Niantic Spatial and has committed a $50 million investment in the new venture. Additionally, €200 million from Niantic’s former balance sheet will fund the AI spin-off. Existing investors—including Nintendo, Google, Coatue, and IVP—will receive $3.5 billion from the sale and retain $350 million in company funds while also holding stakes in Niantic Spatial.
For Savvy Games Group, this acquisition is another major step in Saudi Crown Prince Mohammed bin Salman’s vision to transform Saudi Arabia into a global gaming hub. The initiative, launched in 2022, aims to diversify the country’s economy away from oil dependency through a national strategy for gaming and esports. Saudi Arabia’s Public Investment Fund (PIF) has allocated nearly $40 billion to bolster its gaming industry, with plans to establish 250 gaming companies and create 39,000 jobs by 2030.
Savvy Games Group has been instrumental in these efforts, acquiring stakes in Nintendo, Electronic Arts, Activision Blizzard, and Take-Two Interactive. Saudi Arabia has also hosted several high-profile gaming tournaments, including last summer’s Esports World Cup in Riyadh, where over 500 teams competed for a $60 million prize pool.
Looking ahead, Saudi Arabia is set to host the first-ever Esports Olympics in 2027, following a 12-year agreement with the International Olympic Committee signed last year. With Pokémon Go now under its umbrella, Scopely is poised to play a major role in shaping the future of mobile gaming and augmented reality experiences.
Tags : niantic pokémon go, scopely, pokemon go, niantic pokemon go, niantic