Niantic Sells Pokémon GO Division to Scopely for $3.5B

Scopely to Acquire Niantic’s Gaming Division for $3.5 Billion

Leading mobile game developer Scopely announced on Wednesday an agreement to purchase the gaming division of Niantic, the creators of Pokémon GO, for a sum of $3.5 billion. Niantic shareholders are set to receive a total of $3.85 billion, inclusive of an additional $350 million in cash.

Niantic’s Game Portfolio

Niantic’s current lineup of games includes the immensely popular Pokémon GO, boasting over 20 million weekly active users. Other titles within their portfolio are Pikmin Bloom, a game centered around walking launched in 2021, and the augmented reality experience Monster Hunter Now, which debuted in 2023.

Furthermore, Niantic developed Campfire, a platform designed for community engagement, and Wayfarer, a tool enabling players to contribute new locations to Niantic’s game worlds.

Focus Shift to Real-World Mapping

Following the sale, Niantic will concentrate its efforts on developing detailed, real-world 3D maps. This will be undertaken by a newly formed, independent entity named Niantic Spatial, and will continue to be spearheaded by the company’s CEO and founder, John Hanke.

All personnel currently involved in Niantic’s game development will transition to Scopely, adding to Scopely’s existing team of 2,300 employees.

Statements from Key Figures

Hanke expressed his confidence in Scopely’s ability to nurture Niantic’s games, stating, “Niantic games have always been a bridge to connect people and inspire exploration, and I am confident they will continue to do both as part of Scopely.”

He further highlighted Scopely’s expertise in live service game operation, their successful collaborations with major intellectual property holders, and their dedication to player communities and development teams.

Financial Details and Investment

Niantic Spatial will receive a $250 million cash injection, comprised of $200 million from Niantic itself and a $50 million contribution from Scopely.

Scopely has assured players that Niantic’s games, applications, and events will remain faithful to their original spirit. While the company, known for hits like “MONOPOLY GO!” and “Stumble Guys,” has not revealed specific plans for the future of Niantic’s games, they intend to maintain the core experience.

Games Remaining with Niantic Spatial

Niantic will retain operation of Ingress Prime, the updated version of their initial game, Ingress, and the pet simulator game, Peridot, under the Spatial umbrella.

Industry Analysis

According to Darang Candra, Director for East Asia & Southeast Asia Research at Niko Partners, “Scopely is solidifying its position in the mobile games space with this acquisition.”

Candra explained that the acquisition expands Scopely’s reach into augmented reality and geolocation gaming, while also strengthening their relationships with key intellectual property owners like The Pokémon Company and Capcom.

Challenges Faced by Niantic

Despite releasing several well-received titles in recent years, Niantic has found it difficult to replicate the success of Pokémon GO. Even Pokémon GO has seen player criticism regarding the increasing prevalence of paid content.

Post-pandemic, the company discontinued several ambitious projects, including games based on NBA, Harry Potter, and Marvel properties, and has implemented multiple rounds of layoffs.

The Difficulty of AR and Location-Based Games

Niko Partners’ Candra noted the significant development and maintenance costs associated with augmented reality and location-based games. He also emphasized the crucial role of a strong underlying intellectual property in driving game popularity.

Revenue Disparity Among Niantic Titles

Data from Sensor Tower reveals that Pokémon GO generated over $520 million in revenue through in-app purchases in 2024. However, Monster Hunter Now, the next highest-earning Niantic title, only brought in $86 million, demonstrating a substantial revenue gap.

Niantic’s Future Focus on Data Collection

Looking ahead, Niantic will prioritize the collection of real-world location data. Last year, they updated their Scaniverse app to allow users to create 3D models of real-world objects and share this data with developers.

In November 2023, the company articulated its ambition to construct a comprehensive geospatial model leveraging machine learning to analyze and connect scenes globally.

This article has been updated to include insights from industry analysts.