Pokémon Go ownership to be bought by Saudi firm in $3.5bn deal

Pokémon Go, the hit augmented reality (AR) mobile game, is soon expected to have a new owner, as reports emerged recently suggested that Niantic Inc., the game’s developer, is preparing to sell its gaming division to Scopely Inc., a company owned by Saudi Arabia's Savvy Games Group.

It was reportedly that the deal is worth $3.5 billion, which makes it one of the biggest gaming acquisitions in recent years.

Pokémon Go up for sale

Pokémon Go was launched in 2016, after which it became a global sensation, breaking download records. The game uses AR technology to let players find and catch Pokémon in real-world locations.

It was developed in partnership with Nintendo, Google, and The Pokémon Company and reached over 500 million downloads in the first year.

Notably, the possible sale marks a major shift for Niantic, which was founded by John Hanke. Before creating Pokémon Go, Hanke worked on Google Maps and Google Earth, later using his mapping expertise to develop augmented reality games.

Niantic’s first AR game, Ingress, laid the groundwork for Pokémon Go’s success. Despite Pokémon Go’s rise to popularity, Niantic struggled with other titles, as the company met with several challenges in the AR gaming market and was compelled to shut down several projects after the COVID-19 pandemic

In 2023, Niantic laid off 230 employees, about 25% of its workforce, to focus on Pokémon Go. Hanke admitted that AR technology was advancing slower than expected.

In the wake of recent developments, it seems Niantic may return to its roots in mapping technology. The company has been working on a large geospatial model, using data from its apps to create advanced spatial intelligence.