Scopely, the Saudi-owned developer of the popular mobile game “Monopoly Go!”, has struck a $3.5 billion deal to buy “Pokémon Go” and several other apps from Niantic, which has decided to shift its strategy to focus on artificial intelligence.
Pokémon Go became a global sensation upon its release in 2016, becoming one of the most popular and profitable mobile games of all time. It also paved the way for a new breed of augmented reality (AR) apps, in which digital characters appear in the real world through a smartphone camera.
The game is still one of the highest-grossing mobile titles with 30 million monthly active players who spent over $1 billion on Niantic-related products last year.
Scopely Gains 500 Million Players with Acquisition of 'Pokémon Go' and 'Monopoly Go!'
With this transaction, Scopely, which was acquired by Saudi Savvy Games Group for $4.9 billion in 2023, will significantly expand its gaming community, exceeding 500 million users. The main driver of this growth is the huge popularity of “Monopoly Go!”, which, according to AppMagic analysts, was the second most profitable mobile game last year, with revenues of around $2.2 billion.
The Financial Times quotes Tim O'Brien, chief revenue officer at Scopely, who said:
We’re incredibly inspired by what the Niantic team has created over the past decade—delivering innovative experiences that engage a massive global community and get people involved in real-world activities. Few games in the world have achieved the scale and longevity of Pokémon Go, which last year attracted more than 100 million players.
San Francisco-based Niantic was formed as a spinoff from Google’s maps division in 2015 and was valued at $9 billion in 2021. The company sold its Scopely gaming business while creating a new unit focused on “geospatial AI” that will develop a “next-generation map” using imagery and geolocation data collected by gamers.
Niantic revolutionizes the world: AI, smart glasses and robots on the maps of the future
Niantic founder and CEO John Hanke said the new company, Niantic Spatial, is working on maps that will make “the world more understandable to machines” — from smart glasses to robots. “Niantic is creating models that will help AI move beyond screens and into the real world,” Hanke said.
Scopely will continue to share some player data as part of a technology licensing agreement. Additionally, the company will invest $50 million in Niantic Spatial, which will also receive €200 million from the financial resources of its former parent company.
Existing Niantic investors — including Nintendo, Google, Coatue, and IVP — will receive $3.5 billion from the deal, plus an additional $350 million in equity already in the company’s account. They will also become shareholders in the new AI division.
$40 Billion Gaming: Saudis Bet on Esports and Gaming Industry
For Saudi group Savvy Games, it is another step in Crown Prince Mohammed bin Salman’s plan to make Saudi Arabia a global gaming hub. In 2022, the government announced a national gaming and esports strategy, and a Saudi sovereign wealth fund has been appointed to implement the goal as part of efforts to diversify the economy away from oil.
The Public Investment Fund (PIF) has committed nearly $40 billion to developing the country's gaming sector, with the goal of creating 250 gaming companies and 39,000 jobs by 2030. Savvy Games Group is a key vehicle for implementing this strategy. The fund has invested in shares in Nintendo, Electronic Arts, Activision Blizzard, and Take-Two Interactive to date.
photo: Benny Marty / Shutterstock
Saudi Arabia has also hosted major gaming tournaments in recent years, the largest of which was last year’s Esports World Cup in Riyadh, where more than 500 teams competed for more than $60 million in prizes.
Saudi investment in gaming will continue, with the kingdom set to host the first Olympic esports Games in 2027. Last year, Saudi Arabia signed a 12-year agreement with the International Olympic Committee to host the games.
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