Niantic, the studio behind the iconic Pokémon Go, has announced a major shift in its strategy, pivoting toward AI while selling its gaming division to mobile developer Scopely for $3.5 billion. Scopely, which was purchased by Saudi Arabia’s sovereign wealth fund, Savvy Games Group, in 2023, will absorb Niantic’s mobile game operations, including Pokémon Go. The deal comes after Niantic’s games generated more than $1 billion in revenue in 2024.
However, Niantic will retain its geospatial technology from Pokémon Go and spin it off into a new AI mapping company called Niantic Spatial. The new company aims to create a 3D world model based on users’ visual data and will receive a $200 million investment from Niantic, with Scopely contributing an additional $50 million.
The fate of location data from Pokémon Go’s 20 million weekly active users remains unclear, raising concerns about privacy and data management in the wake of the deal.
Scopely, which already has other IP-based hits like Monopoly Go! in its portfolio, is known for its aggressive monetization strategies. The company is a key player in the global gaming market, now under the umbrella of Savvy Games Group, a subsidiary of Saudi Arabia’s Public Investment Fund (PIF), which holds a dominant position in the esports industry.
