Niantic, the developer behind the global sensation Pokemon Go, has announced the sale of its gaming division to Scopely, a major player in the mobile gaming industry, for $3.5 billion. The deal includes some of Niantic’s biggest titles such as Pokemon Go, Pikmin Bloom, and Monster Hunter Now. This strategic move is part of Niantic’s broader restructuring, allowing the company to pivot towards its emerging geospatial AI business.
 

A Strategic Sale to Scopely

The acquisition will allow Scopely, a subsidiary of Saudi Arabia’s Savvy Games Group backed by the Public Investment Fund (PIF), to expand its portfolio with some of the most popular augmented reality (AR) games in the world. Scopely has established itself as a prominent force in the mobile gaming industry with hits like Marvel Strike Force and Star Trek Fleet Command. The addition of Niantic’s globally recognized AR games is expected to strengthen Scopely’s presence in the mobile gaming space. In addition to the core $3.5 billion sale, the deal also includes an additional $350 million cash distribution from Niantic. This cash payout brings the total value of the transaction to approximately $3.85 billion for Niantic’s equity holders.
 

Niantic’s Focus on Geospatial AI

Following the sale of its gaming division, Niantic will now concentrate its efforts on developing advanced geospatial AI solutions. As part of this strategy, Niantic is launching a new independent entity called Niantic Spatial Inc. Led by John Hanke, the former CEO of Niantic, this new company has secured $250 million in funding to expand its work in spatial computing, extended reality, and AI-driven applications. John Hanke expressed confidence in the strategic shift, explaining that the new entity’s goal is to lead advancements in geospatial AI, enabling better real-world interactions for both enterprise and consumer applications. "Our goal is to lead the future of geospatial AI by building spatial intelligence that helps people better understand, navigate, and engage with the physical world," Hanke stated. Niantic Spatial Inc will leverage Niantic's proprietary digital mapping and real-world AR technology to develop applications across industries such as logistics, construction, and tourism.
 

Commitment to Players and Future Game Development

Despite the sale, Niantic has assured players that their favorite games will continue to thrive under Scopely’s management. Niantic emphasized that its gaming teams will remain intact, continuing to develop new content, features, and events for titles like Pokemon Go. In a statement, Niantic said, "Our game team has exciting long-term roadmaps that they will continue to build upon as part of Scopely. Players can expect that the games, apps, services, and events they know and love will continue to receive ongoing investment." Ed Wu, head of Pokemon Go, expressed confidence that Scopely’s expertise would ensure the game’s sustained success. He noted that Scopely’s commitment to the Pokemon Go community aligns perfectly with Niantic’s original vision. "Scopely expressed a deep admiration for this community and our team. I have every belief that Pokemon Go will flourish as part of Scopely, not only into its second decade but for many more years to come," Wu stated. He also confirmed that the entire Pokemon Go team would remain with Scopely to continue developing fresh content and new live events.
 

A Bold Move Amid Industry Changes

The sale of Niantic’s gaming division comes amid significant shifts in the global gaming landscape. As companies increasingly invest in AI-driven technologies, Niantic’s pivot to geospatial AI aligns with broader trends in tech innovation. Niantic first emerged from Google in 2015 with a mission to develop games that promote real-world interactions — an idea that resulted in the massive success of Pokemon Go. The game's innovative blend of augmented reality, mobile technology, and outdoor exploration redefined mobile gaming. However, while Pokemon Go maintained a strong player base, Niantic’s other titles struggled to replicate the same level of success. By shifting focus to its geospatial AI venture, Niantic aims to carve a niche in digital mapping and spatial intelligence.
 

Scopely’s Growing Gaming Empire

The acquisition significantly bolsters Scopely’s standing in the mobile gaming industry. With access to Niantic’s popular AR titles, Scopely now holds some of the most iconic and successful location-based games in the world. The move is expected to strengthen Scopely’s ability to deliver immersive gaming experiences, further expanding its influence. Scopely’s backing by Saudi Arabia’s PIF-backed Savvy Games Group places it in a powerful position to dominate the mobile gaming sector. The group's investment strategy aligns with its goal to position Saudi Arabia as a major hub for the gaming industry.
 

Niantic's decision to sell its gaming division marks a significant turning point for the company. While it steps away from active game development, its new focus on geospatial AI aims to revolutionize industries by blending technology with real-world applications. Meanwhile, Scopely’s acquisition of hit titles like Pokemon Go signals a strong commitment to maintaining and enhancing these beloved franchises. With dedicated teams continuing to expand content and services, players can expect continued support and exciting new features. As the mobile gaming industry evolves, this strategic shift highlights how companies are adapting to meet emerging trends in AR, AI, and spatial computing. Both Niantic and Scopely are poised to play key roles in shaping the future of these innovations.