Saudi Arabia’s gaming industry has reached a new milestone with Scopely’s recent acquisition of American game developer Niantic for a whopping £2.7 billion ($3.5 billion). This groundbreaking deal, facilitated by Scopely—a subsidiary of Savvy Games Group backed by Saudi Arabia’s sovereign wealth Public Investment Fund—marks a significant expansion in the gaming realm. Scopely, already celebrated for hit mobile games like ‘Monopoly Go’, ‘Marvel Strike Force’, and ‘Star Trek Fleet Command’, now adds Niantic, the studio behind the worldwide sensation ‘Pokémon GO’, to its impressive portfolio.
What Lies Ahead for Niantic?
In this monumental acquisition, Scopely has not only acquired Niantic for £2.7 billion ($3.5 billion) but has also invested an additional £270 million ($350 million) in the company. According to a statement released by Scopely, Niantic’s entire games team will transition to Scopely, allowing them to continue their ongoing projects and developments seamlessly. In a detailed blog post, Scopely’s co-CEOs, Javier Ferreira and Walter Driver, emphasized their commitment to expanding Niantic’s beloved franchises, aiming to establish them as ‘forever games’ sustained by robust community support and ongoing development efforts. Notably, Niantic’s renowned live events, community-building apps, and real-world exploration features will remain a central focus under Scopely’s stewardship.
Additionally, Niantic will be spinning off its geospatial AI division into a new independent entity called Niantic Spatial Inc. Led by Niantic founder John Hanke, this new venture will kick off with approximately £193 million ($250 million) in funding—£154 million ($200 million) from Niantic’s coffers and an added £39 million ($50 million) from Scopely.
Why Niantic is a Major Win for Scopely
Tim O’Brien, Chief Revenue Officer and Board Member at Scopely, highlighted the natural synergy between the two companies, emphasizing how Niantic’s innovative community experiences seamlessly align with Scopely’s vision for robust player engagement. O’Brien praised the unparalleled success of “Pokémon GO”, noting its ability to foster in-person connections through live events that draw millions of attendees. John Hanke echoed this sentiment, expressing confidence in the partnership and emphasizing shared values around live service excellence, player community care, and creative independence.
Hanke stated, “Niantic games have always been a bridge connecting people and inspiring exploration. Scopely shares our focus on building incredible live services and cares deeply about its player communities and game-making teams.”
Pokémon GO’s Exceptional Reach
Since its launch in 2016, ‘Pokémon GO’ has captured the hearts of millions worldwide, boasting around 20 million active weekly players. The game consistently ranks among the top 10 mobile games globally and sold two million tickets for its ‘Pokémon GO Fest’ live events in 2024 alone. Ed Wu, Head of ‘Pokémon GO’, reassured players that Scopely’s support will enhance the game’s long-term development, offering the team creative freedom while maintaining a strong partnership with The Pokémon Company.
Wu explained, “Pokémon GO has always been a work in progress, but how we create and evolve it will remain unchanged, and I hope we can make the experience even better for all of you.”
Saudi Arabia’s Gaming Ambitions: A £10.3 Billion Future by 2030
The acquisition of Niantic by Scopely underscores Saudi Arabia’s strategic investment in the gaming and esports industry. Projections indicate that the sector could grow to an impressive £10.3 billion ($13.3 billion) by 2030, as outlined in a report by PwC for Savvy Games Group. With over £29.4 billion ($38 billion) already invested in the gaming sector, Saudi Arabia aims to create 39,000 new jobs through the National Gaming and Esports Strategy. With approximately 67% of the Saudi population (23.5 million individuals) engaged in gaming, the Kingdom is rapidly emerging as a key player in the global gaming landscape.
Moreover, Saudi esports talent, including acclaimed competitors like MSdossary7 and the Saudi Rocket League team, are garnering international recognition. Major projects such as the NEOM gaming hub and upcoming events like the 2025 Olympic Esports Games further underscore the country’s commitment to leading the gaming industry. As Saudi Arabia gears up to host the FIFA World Cup in 2034, its gaming and esports initiatives are poised to become significant drivers of economic growth, blending cultural innovation with global gaming aspirations.
