An Uncertain Future for Pokémon Go’s Creator: Is Niantic About to Be Acquired by an Arabian Giant?
Once a mobile gaming sensation, Pokémon Go and other augmented reality (AR) games by Niantic may soon change hands. The company is currently negotiating the sale of its gaming division to Scopely, a game company backed by the Saudi Public Investment Fund (PIF).
A Billion-Dollar Deal and Niantic’s Turning Point
According to Bloomberg, Niantic and Scopely could finalize a deal within the next few weeks, with an estimated price of $3.5 billion. If the acquisition is completed, ownership of Pokémon Go—which has surpassed 1 billion downloads—along with Niantic’s other mobile games, will officially belong to a new industry powerhouse.
Launched in 2016, Pokémon Go quickly became a global phenomenon, generating over $6.6 billion in revenue. However, in recent years, Niantic has struggled to replicate this success with other titles like Peridot and Harry Potter: Wizards Unite, putting the company in a difficult financial position.
Niantic Struggles After Consecutive Failures
After the initial success of Pokémon Go, Niantic experimented with multiple AR-based games, but most failed to achieve significant traction. Harry Potter: Wizards Unite was shut down in 2022, while several other projects were canceled due to poor performance. The company also laid off employees, marking two years of financial instability.
Originally an internal Google project, Niantic became an independent company in 2015 when Google restructured under the Alphabet Inc. umbrella. John Hanke, Niantic’s founder and CEO, previously led Google Geo, specializing in satellite mapping. Pokémon Go leveraged this expertise, creating an interactive, location-based experience that encouraged players to walk around their neighborhoods to catch Pokémon.
Despite its groundbreaking technology, Niantic has struggled to maintain its momentum. AR tools like Lightship, which allow users to capture and share 3D images of real-world locations, have not been enough to sustain the company’s dominance in the market.
Scopely – The Potential New Owner of Pokémon Go
Scopely, the company negotiating to acquire Niantic, is controlled by Savvy Games Group, a subsidiary of the Saudi Public Investment Fund (PIF). Over the past few years, PIF has aggressively expanded its influence in the gaming industry, investing heavily in major acquisitions.
In August 2024, Niantic signed a partnership agreement with Savvy Games Group to expand its presence in Saudi Arabia, the UAE, and Egypt. However, little information has been disclosed about the specifics of this partnership. Now, if the $3.5 billion acquisition is finalized, Pokémon Go could enter an entirely new era under the leadership of a Middle Eastern gaming giant.
What’s Next for Pokémon Go and Niantic?
If Niantic falls into Scopely’s hands, it could mark a significant turning point for both companies. With Saudi Arabia’s strong financial backing, Pokémon Go might continue to receive investment and expansion, possibly entering new markets.
However, this also raises concerns about potential changes in the game’s direction. Will Pokémon Go maintain its original identity, or will it gradually evolve to align with its new owner’s strategy?
Regardless of the outcome, this acquisition will undoubtedly reshape the mobile gaming industry, especially in the AR gaming sector. Pokémon Go was once an iconic game, but under new ownership, can it continue its legendary success? Only time will tell.