Niantic Labs, the company behind Pokémon Go, is selling its video game division to Saudi-owned mobile game developer Scopely in a $3.5 billion deal. This move comes after Niantic struggled to recreate the success of Pokémon Go with its other augmented reality (AR) games. The agreement will transfer some of Niantic’s biggest titles, including Pokémon Go, Monster Hunter Now, and Pikmin Bloom, to Scopely.
Niantic’s CEO, John Hanke, remains optimistic about the transition, stating that the company’s games have always been about connecting people and encouraging exploration. He believes Scopely will provide the necessary investment to support these games for years to come.
What Happens Next?
Before the deal is finalized, it must pass regulatory reviews and meet closing conditions. If approved, Scopely will also gain control of Pokémon Go’s social apps, Campfire and Wayfarer, which help players interact and explore the real world. Scopely expressed enthusiasm for the acquisition, calling Niantic’s developers “exceptional game makers” who have created “category-leading games.”
However, not all of Niantic’s games are included in the deal. Peridot and Ingress—the latter of which relies on the Wayfarer mapping app—will remain with Niantic under its separate division, Niantic Spatial.
The Rise and Decline of Pokémon Go
When Pokémon Go launched in 2016, it became an instant global sensation, attracting over 500 million players in its first year. The game encouraged players to explore their surroundings in search of Pokémon, blending digital gaming with real-world adventure. However, its popularity took a hit in 2020 when COVID-19 lockdowns restricted outdoor movement.
Niantic faced financial challenges as engagement waned. Between 2022 and 2023, the company canceled several projects and laid off at least 310 employees. While Pokémon Go remained its strongest title—reportedly generating $7.9 billion in revenue since launch—Niantic struggled to achieve similar success with newer games.
Saudi Arabia’s Expanding Gaming Empire
The deal is part of Saudi Arabia’s broader push into the gaming industry. The country’s Public Investment Fund (PIF) has previously acquired stakes in major gaming companies like Nintendo, Activision Blizzard, and Electronic Arts. In 2021, Saudi Arabia also launched Savvy Games Group, an esports and gaming company, which later bought Monopoly Go! developer Scopely for $4.9 billion in 2023.
Scopely’s chief revenue officer, Tim O’Brien, had hinted at a major 2025 deal involving a “scaled global franchise” expected to generate over $1 billion in revenue. While Niantic does not publicly disclose its earnings, Scopely revealed that Niantic’s gaming business brought in $1 billion in revenue last year alone.
A New Direction for Niantic and Scopely
With this sale, Niantic appears to be shifting away from game development to focus more on AR and mapping technologies. Meanwhile, Scopely is expanding its reach in the mobile gaming market by adding some of the world’s most successful AR titles to its portfolio.
As the deal moves toward regulatory approval, the gaming industry will be watching closely to see how Scopely handles its new acquisitions and whether it can sustain Pokémon Go’s long-term success.
