Scopely Acquires Niantic's Gaming Division for $3.5 Billion

Niantic Labs, the studio behind the globally successful Pokémon Go, has announced the sale of its gaming division to Saudi Arabia-owned Scopely for $3.5 billion. This move signals a major strategic shift for Niantic as it pivots away from gaming to focus on geospatial technology.

Announced on March 12, 2025, this deal ranks among the largest gaming acquisitions in recent years. Scopely, a U.S.-based mobile gaming company, was previously acquired by Saudi Arabia’s Savvy Games Group for $4.9 billion in 2023. The latest purchase aligns with Saudi Arabia’s broader ambitions to establish itself as a global hub for gaming and esports, diversifying its economy beyond fossil fuels.

Since the ground breaking success of Pokémon Go in 2016, Niantic has struggled to replicate its impact. Titles such as Harry Potter: Wizards Unite and Pikmin Bloom failed to reach similar popularity. The sale of its gaming division allows Niantic to shift its focus toward geospatial technology, with an emphasis on urban mapping, navigation, and augmented reality (AR) applications for enterprise use.

Through Savvy Games Group, Saudi Arabia has been rapidly expanding its gaming portfolio. Its acquisition of Scopely in 2023, followed by this latest deal with Niantic, further solidifies its presence in the global gaming industry. The kingdom is making strategic investments to enhance its position in game development and AR-powered entertainment.

By acquiring Niantic’s gaming division, Scopely gains expertise in AR-driven game development, which could help enhance its existing portfolio and launch new location-based gaming experiences. Meanwhile, Niantic will deepen its focus on AR innovations, likely forming partnerships with technology and enterprise firms to integrate geospatial solutions into mainstream applications.

This deal represents a significant transition for both companies. While Niantic pivots toward AR-driven solutions, Saudi Arabia continues to cement its influence in the gaming industry through high-profile acquisitions, positioning itself as a major player in the global gaming market.