The creator of Pokémon Go has never managed to reproduce The phenomenal success of its flagship application. After several difficult years, marked by dismissals and aborted projects, The Californian company’s video game component could soon go under the control of the Saudi kingdomoverwhelming the landscape of the mobile game.
A historical transaction that redraws the industry
The agreement under negotiation does not only concern Pokémon Go. Niantic is preparing to sell the entire video games division to Scopely, a company bought two years ago by Savvy Games Group for nearly 5 billion dollars. This entity belongs to the public Investment Fund (PIF), the Saudi sovereign fund which multiplies strategic investments in the entertainment industry.
Discussions are progressing quickly and an official announcement could take place in the coming weeks. For Scopely, this acquisition is perfectly part of its expansion strategy. Brian Ward, CEO of Savvy Games, had also announced in early 2024 his intention to acquire a “Leader in its kind »» – A barely veiled reference to Pokémon Go.
From Silicon Valley to Riyadh: the hectic history of Niantic
The story of Niantic perfectly illustrates the roller coasters that a Silicon Valley company can experience. Born in Google’s premises in 2015, the company founded by John Hanke experienced a meteoric ascent thanks to Pokémon Go. The augmented reality game, which encouraged players to explore their environment to capture virtual creatures, quickly became a phenomenon global cultural.
But the Success Story gradually broke out. Despite attempts with other prestigious licenses like Harry Potter, Niantic has never found the magic of his first success. The 1920s and 2023 were particularly difficult, marked by waves of layoffs and the cancellation of several development projects.
An uncertain future for the nugget of augmented reality
If the sale materializes, Niantic will retain its technological activities, including its tools for capturing and sharing 3D scans. The company has unique expertise in the field of cartography and geospatial data, inherited in part from the past of its founder at Google.
The company has recently announced the development of a “vast geospatial model” using automatic learning in order to find applications far beyond entertainment.
The links between Niantic and Saudi Arabia do not date from yesterday. Last August, the company had already signed an agreement with Savvy Games to develop its presence in the Middle East, especially in Saudi Arabia, in the United Arab Emirates and Egypt. It remains to be seen whether this deal will take place and what consequences it will have for Pokémon Go.
- Niantic negotiates the sale of his video games division in Scopely for $ 3.5 billion
- The agreement would include Pokémon Go and other mobile titles of the company
- The transaction could be formalized in the coming weeks, marking a new chapter in the history of the mobile game
