Niantic Reportedly Selling Pokémon Go Games Division

Niantic Considers Sale of Game Development Division

Niantic, the creator of the widely-played augmented reality game Pokémon Go, is reportedly seeking to divest its game development operations. This information stems from a report published by Bloomberg, referencing sources who wish to remain unnamed.

Discussions are underway with Scopely, a mobile game developer backed by Saudi Arabia’s Savvy Games Group, regarding a potential sale valued at approximately $3.5 million.

As of now, neither Niantic nor Scopely have issued an official statement in response to inquiries regarding this matter.

Early Successes and Recent Challenges

Niantic has distinguished itself as a leader in leveraging augmented reality technology for game development. Their initial release, Ingress, garnered acclaim for its innovative approach to territory control based on real-world locations.

However, the company achieved unprecedented success with Pokémon Go, which rapidly evolved into a global sensation following its 2016 launch.

While subsequent game releases have experienced moderate success, none have reached the immense popularity of Pokémon Go.

Restructuring and Strategic Shifts

In 2022, Niantic underwent a restructuring process, resulting in an 8% reduction in workforce and the cancellation of four ongoing projects, including Harry Potter: Wizards Unite.

Further adjustments occurred in 2023, with the layoff of 230 employees and the termination of game development for both the NBA and Marvel licenses.

Focus on Geospatial Technology

Niantic has been actively developing its Scaniverse application, enabling users to generate 3D models of real-world objects and share this data with developers.

In November, the company articulated its ambition to construct a comprehensive geospatial model. This model will utilize machine learning to analyze and interconnect real-world environments on a global scale.

The goal is to create a system capable of understanding scenes and linking them to a vast network of other locations worldwide.