In a landmark move for the gaming industry, Niantic, the creator of the wildly popular augmented reality game Pokémon Go, announced on Wednesday that it has agreed to sell its video game business to Scopely for $3.5 billion. Scopely, which has connections to Saudi Arabia's Public Investment Fund, intends to embrace all staff from Niantic's gaming teams as part of the acquisition.
Since its launch in 2016, Pokémon Go has captured the hearts of millions worldwide, prompting players to explore streets, parks, and other venues to catch fictional monsters inspired by the iconic Japanese franchise. With over 20 million active weekly players, the game's financial success continues to thrive, proving it to be a valuable asset for Scopely.
This acquisition aligns with Saudi Arabia's broader strategy to invest heavily in the gaming industry, with the Public Investment Fund committing $38 billion to this sector by 2030 as part of its efforts to diversify the national economy away from its traditional reliance on fossil fuels. The fund, managing nearly a trillion dollars in assets, is diversifying its investments across various sectors, including entertainment and technology.
Critics, however, have voiced concerns that Saudi Arabia's focus on gaming and sports investments may serve as a means to improve its global image amidst ongoing criticisms related to human rights issues. As the kingdom intensifies its influential role in international sports and gaming, the results of such investments will continue to draw attention.
Located in Culver City, California, Scopely already boasts a strong gaming lineup, including titles such as Monopoly Go. The recent acquisition reflects the company's ambition to solidify its standing as a leader in the video gaming landscape while aligning itself with the significant financial backing of the Saudi royalty, aiming for future growth and innovation in the digital realm.
