In a landmark arrangement, Niantic, the developer of the immensely popular augmented reality game Pokémon Go, announced on Wednesday that it will sell its video game business to Scopely for a whopping $3.5 billion. This acquisition integrates a significant player in the gaming industry with Scopely, which is owned by Saudi Arabia's sovereign wealth fund.
Since its launch in 2016, Pokémon Go has become a global phenomenon, prompting millions of players to venture outdoors in search of virtual creatures. The game continues to attract a dedicated fan base, boasting over 20 million active weekly users, which Scopely confirmed in a statement on the acquisition. This sale is part of a broader trend of investments from the Saudi Public Investment Fund, which has made substantial moves in various sectors, particularly in video games.
Scopely, located in Culver City, California, is recognized for its diverse portfolio, which includes popular titles like Monopoly Go. As part of this acquisition, Scopely plans to retain all employees from Niantic's gaming divisions, ensuring continuity and expertise within the newly acquired unit.
In 2023, Scopely itself was acquired for $4.9 billion by the Savvy Games Group, a venture established by the Saudi fund to spearhead technological advancements in gaming. Saudi Arabia has committed to investing $38 billion in the gaming sector by 2030, aiming to diversify its economy beyond oil dependency.
However, the nation’s expansive investments in entertainment, including sports and gaming, have drawn criticism. Some observers view these financial moves as attempts to enhance Saudi Arabia's global reputation, especially concerning its human rights track record.
As Niantic shifts its focus, industry watchers will be keen to see how this transition impacts Pokémon Go and the bigger landscape of mobile gaming under the new ownership.
