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Niantic Sells ‘Pokémon Go’ Division for $3.5 Billion as Saudi Arabia Expands Its Gaming Empire

Prashant Chaudhary by Prashant Chaudhary
March 16, 2025
in Gaming, News
Reading Time: 2 mins read
0
Niantic Sells ‘Pokémon Go’ Division for $3.5 Billion as Saudi Arabia Expands Its Gaming Empire

In a groundbreaking move that signals a major pivot in its business strategy, Niantic Labs has announced the sale of its video-game division to Scopely, a company owned by Saudi Arabia, for a staggering $3.5 billion. This deal not only underscores Niantic’s shift from gaming to a focused exploration of geospatial technology but also highlights Saudi Arabia’s aggressive push to become a global gaming hub.

Niantic Sells ‘Pokémon Go’ Division for $3.5 Billion as Saudi Arabia Expands Its Gaming Empire
Niantic’s $3.5 Billion Sale: The Future of Gaming and Geospatial Tech

A Closer Look at the Deal

During a keynote speech at the Mobile World Congress in Barcelona, John Hanke, the visionary behind the augmented reality phenomenon ‘Pokemon Go’ and CEO of Niantic, outlined the details of the transaction. Under the terms of the agreement, Niantic will also distribute an additional $350 million to its equity holders. Furthermore, the firm is set to carve out its geospatial AI segment into a new entity, Niantic Spatial, equipped with a robust $250 million in capital to navigate its future endeavors.

Niantic Sells ‘Pokémon Go’ Division for $3.5 Billion as Saudi Arabia Expands Its Gaming Empire
From Pokémon Go to Geospatial Innovation: Niantic’s Bold Move

Strategic Reorientation and Expansion

Post-‘Pokemon Go’, Niantic has faced challenges in replicating the immense success of its 2016 hit. The subsequent years saw the company making tough decisions, including layoffs and the discontinuation of the ‘Harry Potter: Wizards Unite’ game. This sale marks a significant turnaround, aiming to leverage their expertise in augmented reality more broadly into geospatial technology, an area ripe with potential.

Saudi Arabia’s Gaming Aspirations

This acquisition by Scopely, following its purchase by Saudi’s Savvy Games for $4.9 billion last year, is part of Saudi Arabia’s broader strategy to diversify its economy beyond oil. The Kingdom is investing nearly $38 billion in the gaming industry, including substantial stakes in major gaming companies like Nintendo. Saudi Arabia is fast becoming a burgeoning hub for digital entertainment, hosting events like the Esports World Cup and steadily climbing the ranks in the global gaming market.

Niantic Sells ‘Pokémon Go’ Division for $3.5 Billion as Saudi Arabia Expands Its Gaming Empire
Saudi Arabia Expands Its Gaming Empire with Niantic’s Division Sale

Implications for the Global Gaming Landscape

The sale of Niantic’s gaming division to Scopely is more than just a business transaction. It is a clear indicator of the shifting dynamics in the gaming industry, where traditional and augmented reality gaming intersects with broader technological advances and geopolitical strategies. This deal is likely to set a precedent for how gaming companies and national economies interact in the evolving digital landscape.

Tags: Gaming Industrygeospatial techNiantic LabsPokémon GoSaudi gamingScopelyVideo Game News

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