Pokémon GO Sold to Saudi Government as Part of $3.5 Billion Deal
In a shocking move, Niantic Labs, the American video-game developer behind Pokémon GO, Pikmin Bloom, and Monster Hunter, has sold its video-game division to Saudi Arabia-owned Scopely for a whopping $3.5 billion. This massive deal marks a significant shift in the gaming industry, with Saudi Arabia’s sovereign wealth fund getting a significant stake in one of the most popular mobile gaming franchises.
As reported by Reuters, Saudi’s sovereign wealth fund, via Savvy Games, acquired Scopely for $4.9 billion in 2023. This acquisition has now led to the sale of Niantic’s game division to Scopely, which will give the Saudi government a significant stake in the gaming industry.
Niantic, which has been struggling to replicate the success of Pokémon GO, has laid off employees in 2022 and 2023. The company’s decision to sell its game division comes as a surprise to many, especially considering the massive success of Pokémon GO, which has been downloaded over 1 billion times worldwide.
Pokémon GO, which was released in 2016, revolutionized the gaming industry by introducing augmented reality (AR) technology to mobile gaming. The game became a global phenomenon, with players of all ages venturing out to catch Pokémon in the real world. The game’s success led to a significant increase in foot traffic in cities and towns, as well as a boost in local businesses.
However, despite its initial success, Niantic has struggled to maintain momentum. The company released Pikmin Bloom in 2021, but the game failed to replicate the success of Pokémon GO. Niantic has also faced criticism for its handling of the game’s monetization, with many players feeling that the game is too focused on in-app purchases.
The sale of Niantic’s game division to Scopely marks a significant shift in the gaming industry. Scopely, which was acquired by Saudi’s sovereign wealth fund in 2023, has been rapidly expanding its portfolio of games. The company has acquired several popular mobile games, including Love Island: The Game and Walking Dead: Road to Survival.
The acquisition of Niantic’s game division will give Scopely a significant stake in the gaming industry. Pokémon GO is one of the most popular mobile games in the world, with over 1 billion downloads worldwide. The game’s success has also made it a significant revenue generator for Niantic, with the company reportedly generating over $1 billion in revenue in 2020 alone.
The sale of Niantic’s game division to Scopely has raised concerns among gaming enthusiasts and industry experts. The acquisition marks a significant shift in the gaming industry, with Saudi Arabia getting a significant stake in one of the most popular mobile gaming franchises.
“This is a significant development in the gaming industry,” said industry expert, Jameson Hayes. “Scopely’s acquisition of Niantic’s game division marks a significant shift in the industry, with Saudi Arabia getting a significant stake in one of the most popular mobile gaming franchises. It will be interesting to see how this acquisition affects the gaming industry in the long run.”
The acquisition has also raised concerns about the impact on Niantic’s employees. The company has laid off employees in 2022 and 2023, and the sale of its game division may lead to further job losses.
“Niantic’s decision to sell its game division is a significant blow to its employees,” said gaming industry expert, Rachel Lee. “The company has been struggling to replicate the success of Pokémon GO, and this acquisition may lead to further job losses. It will be interesting to see how this acquisition affects the gaming industry and its employees in the long run.”
In conclusion, the sale of Niantic’s game division to Scopely marks a significant shift in the gaming industry. The acquisition of Pokémon GO, one of the most popular mobile games in the world, by Saudi Arabia-owned Scopely has raised concerns among gaming enthusiasts and industry experts. The impact of this acquisition on Niantic’s employees and the gaming industry as a whole remains to be seen.
