Niantic Labs has introduced that it’s promoting its online game division to Saudi Arabia-owned cellular developer Scopely for $3.5 billion after struggling to copy the success of Pokémon Go throughout its different AR video games. The newly inked settlement consists of Niantic’s Pokémon Go, Monster Hunter Now, and Pikmin Bloom cellular gaming titles.
“Niantic video games have at all times been a bridge to attach individuals and encourage exploration, and I’m assured they may proceed to do each as a part of Scopely,” stated Niantic CEO John Hanke. “I firmly consider this partnership is nice for our gamers and is the easiest way to make sure that our video games have the long-term help and funding wanted to be ‘without end video games’ that can endure for future generations.”
The acquisition is topic to regulatory approval and different closing situations. Ought to the deal undergo, it would additionally deliver Niantic’s social companion apps for Pokémon Go — Campfire and Wayfarer — beneath Scopely possession. Scopely says it would acquire “Niantic’s total staff of remarkable gamemakers and category-leading video games.” Nonetheless, the Peridot and Ingress AR gaming titles, the latter of which can also be supported by the Wayfarer mapping app, will stay beneath the possession and growth of Niantic Spatial.
Pokémon Go attracted greater than 500 million gamers in its first 12 months, however its reputation was impacted in 2020 when world covid lockdowns saved individuals inside their properties. The corporate has since canceled multiple projects and laid off at least 310 employees between 2022-2023 in an try to “climate the present challenges available in the market.”
At this time’s announcement is Saudi Arabia’s newest try to muscle its way into the gaming industry, having used its Saudi Public Funding Fund (PIF) to accumulate stakes in Nintendo, Activision Blizzard, and EA. The PIF was additionally used to determine Esports and gaming firm Savvy Video games Group in 2021, which later acquired Monopoly Go! developer Scopely for $4.9 billion in 2023.
The announcement seems to be the 2025 “megadeal” that Scopely’s chief income officer Tim O’Brien teased final 12 months, saying throughout a Q&A that it could contain “a scaled world franchise doing hopefully not less than a billion {dollars} in income.” Niantic Labs doesn’t disclose its earnings to the general public, however Scopely stated in its announcement that Niantic’s gaming enterprise drove $1 billion in income final 12 months, and Pokémon Go alone is estimated to have brought in $7.9 billion in revenue since launching in 2016.