San Francisco, CA – Niantic, the developer behind the global phenomenon Pokémon Go, is reportedly in the final stages of selling its games division in a blockbuster deal valued at $3.5 billion. The potential sale marks a significant shift for the company, which pioneered location-based augmented reality (AR) gaming.
According to Bloomberg, Niantic is negotiating the sale with Scopely, a mobile gaming company owned by the Saudi-backed Savvy Games Group. The deal would include Niantic’s flagship game Pokémon Go, alongside other titles like Pikmin Bloom and Monster Hunter Now.
Sources familiar with the discussions told TechCrunch that the transaction is close to being finalized, though neither Niantic nor Scopely has officially confirmed the agreement.
The move comes amid growing challenges for Niantic, which struggled to replicate the success of Pokémon Go after its launch in 2016. While Pokémon Go remains profitable, Niantic has faced layoffs and game cancellations in recent years. The company pivoted towards AR development tools and platforms, betting that the future lies in building augmented reality ecosystems beyond mobile gaming.
According to Polygon, Niantic plans to retain its AR technology and platform division, including its Lightship platform, which provides AR development tools for third-party creators. Selling its games division would allow Niantic to refocus on becoming a leading AR technology provider as the industry prepares for AR wearables and mixed-reality devices.
While Pokémon Go players initially expressed concern over the sale, the game is expected to continue under new ownership, likely benefiting from Scopely’s mobile gaming expertise and significant financial backing.
As the gaming industry undergoes rapid consolidation, this potential sale could redefine the future of location-based AR gaming, with Scopely potentially expanding Pokémon Go’s reach through new features and in-game experiences.
