Niantic, the developer behind the global hit Pokémon Go, has announced the sale of its gaming business to Scopely for USD 3.5 billion (for more than 300 crores),. This strategic move allows Niantic to pivot toward geospatial AI development, while Scopely, a subsidiary of Saudi Arabia’s PIF-backed Savvy Games Group, strengthens its mobile gaming portfolio.
Niantic exits gaming to focus on AI
Niantic CEO John Hanke revealed that the company is restructuring to focus on geospatial AI and other real-world applications. As part of the transition, Niantic is spinning off its AI division into a new company, Niantic Spatial Inc., backed by USD 250 million in capital.
The company aims to develop spatial computing, extended reality (XR), and AI-driven applications that enhance real-world interactions, benefiting industries such as logistics, construction, and tourism.
"Our goal is to lead the future of geospatial AI by building spatial intelligence that helps people better understand, navigate, and engage with the physical world," said Hanke.Scopely expands its AR gaming empire.
Scopely, known for hits like Marvel Strike Force and Star Trek Fleet Command, has acquired Niantic’s Pokémon Go, Pikmin Bloom, and Monster Hunter Now franchises. This deal also includes an additional $350 million cash payout, bringing the total transaction value to USD 3.85 billion.
Scopely’s expertise in live service games makes it a strong fit for managing Pokémon Go and other AR-based games. The company has assured players that these games will continue to receive regular updates, new features, and live events.
"Scopely’s focus on building and operating incredible live services, its experience with beloved intellectual properties, and its dedication to player communities make it the perfect fit for our games," Niantic said in a statement.
Pokémon Go’s future under Scopely
Ed Wu, Head of Pokémon Go, reassured players that the transition would not affect the game’s development team or future updates.
"Scopely expressed a deep admiration for this community and our team. I have every belief that Pokémon Go will flourish under Scopely for many years to come," Wu said in a message to players.
The acquisition signals a new chapter for Pokémon Go, ensuring it remains a key player in the AR gaming space well beyond its second decade.
Niantic’s shift to AI and spatial computing
While Niantic is stepping away from gaming, it remains committed to real-world digital interactions through Niantic Spatial Inc. The new entity will leverage Niantic’s proprietary digital maps and AR technology to create cutting-edge AI-driven applications.
ALSO READ: How hackers take over WhatsApp accounts and smart tips to stop them
ALSO READ: iPhone 16e sales in China surpass iPhone SE by 60 per cent: Report