Niantic Inc. has officially announced the sale of its game division which includes major titles like Pokémon GO, Pikmin Bloom, and Monster Hunter Now to mobile game company Scopely for $3.5 billion. The announcement was made on March 12, 2025, marking a significant shift for the company known for its location-based gaming innovations.
Along with the sale, Niantic revealed plans to establish Niantic Spatial, a new entity focused on geospatial computing and artificial intelligence (AI). This move reflects Niantic's intent to pivot away from traditional gaming and reorient toward developing technologies to support corporate services, particularly those involving detailed three-dimensional mapping.
Scopely, recognized for popular mobile games such as MONOPOLY GO! and MARVEL Strike Force, will gain not only the game titles but also the development teams behind them, including key personnel like Ed Wu, the VP of Pokémon GO, and Keiji Kawai, overseeing the development of other games. All teams will transition to Scopely, ensuring continuity and stability for the gamers who engage with these franchises.
Last year, Niantic's game division posted impressive revenues of over $1 billion, with its monthly active user base reaching approximately 30 million. According to Ed Wu, this deal is expected to allow Niantic to concentrate on its development goals more effectively. "The deal allows us to focus on our development goals," Wu said, adding, "We have full trust Scopely will treat our community well."
The acquisition is particularly notable due to Scopely's ownership by the Savvy Games Group, which is under the umbrella of the Saudi Arabia Public Investment Fund. The deal has drawn attention not only for its size but also for the long-term goals each company is pursuing.
Niantic's founder and CEO, John Hanke, will lead the new Niantic Spatial company. Niantic will contribute $200 million to the new venture, with Scopely investing $50 million, focusing on building a "Large Geospatial Model" intended to assist machines and AI models to understand real-world geographic information more effectively. This model will facilitate future advancements such as autonomous systems and AI decision-making.
Importantly, Niantic Spatial will inherit other popular titles like Ingress and Peridot, which will continue to operate under the new company structure. The strategic separation is seen as necessary, as the gaming industry faces pressure to adapt and innovate, particularly as gaming elements mature. Niantic aims to alleviate some of this pressure by offloading assets and redirecting focus onto more technology-driven pursuits.
This sale, subject to regulatory approval, is anticipated to conclude within the year 2025. The transaction is also significant for existing shareholders, including notable Japanese companies like Nintendo and Fuji Television, who are set to receive $3.85 billion as part of the business reorganization strategy.
Overall, the sale signals major changes not just for Niantic but for the broader gaming industry as companies seek new ways to navigate shifting consumer interests and technological landscapes.
By divesting its role as a pure game developer, Niantic sets itself on a path toward leveraging its geolocation technologies for various applications, ensuring it remains at the forefront of the tech space well beyond the gaming world.
Moving forward, both Niantic and Scopely will pursue distinct but overlapping goals—one focusing on innovative technologies and the other retaining and growing the gaming community centered around beloved franchises. The new chapter started by this deal could lead to more exciting developments for gamers worldwide, as Scopely continues to support and expand upon the titles acquired from Niantic.
With Scopely’s commitment to maintaining service for the game franchises and Niantic’s strategic shift toward growth-oriented, tech-based solutions, the future looks promising for both companies and their customers.