In a significant move within the mobile gaming industry, Scopely announced on March 12, 2025, its agreement to acquire Niantic's games division for $3.5 billion. This acquisition encompasses popular titles such as "Pokémon GO," "Pikmin Bloom," and "Monster Hunter Now," along with companion apps "Campfire" and "Wayfarer."

Niantic's games division boasts over 30 million monthly active players and generated more than $1 billion in revenue in 2024. "Pokémon GO," launched in 2016, has consistently ranked as a top 10 mobile game, with over 20 million weekly active players and more than 100 million unique players in 2024.

As part of the transaction, Niantic will distribute an additional $350 million to its equity holders. The company will also spin off its geospatial artificial intelligence business into a new entity called Niantic Spatial, which will receive $250 million in funding—$200 million from Niantic's balance sheet and $50 million from Scopely. John Hanke, Niantic's founder and CEO, will lead Niantic Spatial, focusing on developing real-world 3D maps and geospatial AI technologies.

John Hanke expressed confidence in the transition, stating, "Niantic games have always been a bridge to connect people and inspire exploration, and I am confident they will continue to do both as part of Scopely." He emphasized Scopely's focus on building and operating live services and its experience with major intellectual properties.

Tim O’Brien, Chief Revenue Officer and Board Member of Scopely, highlighted the alignment between the two companies, noting, "Scopely has always been focused on cultivating meaningful communities through a shared love of play, and the Niantic games organization is one of the best in the world at this endeavor."

This acquisition underscores Saudi Arabia's strategic investment in the gaming industry as part of its Vision 2030 initiative to diversify its economy beyond oil. The kingdom's sovereign wealth fund, through Savvy Games Group, has been actively investing in gaming companies, including a significant stake in Nintendo. The deal aligns with Saudi Arabia's ambition to become a global hub for gaming and esports.

For the gaming community, particularly players of "Pokémon GO," the acquisition raises questions about potential changes to game development and community engagement. However, both companies have assured that the existing development teams will continue their work, aiming to maintain the quality and community-driven focus of the games.

This strategic acquisition reflects broader trends in the gaming industry, including consolidation and the pursuit of augmented reality and geospatial technologies. It also highlights the increasing role of Saudi Arabia in the global gaming market and the potential future developments in augmented reality gaming.