Remember when there was a craze for Pokémon GO a few years ago, when millions of users across the globe flocked over to play the game? Well, Niantic, the developer behind the popular game, has now officially sold its gaming division to mobile game publisher Scopely for a total of $3.5 billion. The deal includes several of Niantic’s existing game projects as well, and currently awaits the green signal from regulators.
Niantic has been a key player in the AR gaming industry, with Pokémon GO achieving massive global success since its launch in 2016. However, the company has faced difficulties in maintaining the same level of engagement with its subsequent projects, as despite the runaway success of Pokémon GO, Niantic has struggled to create another hit of comparable scale. Games such as Harry Potter: Wizards Unite, Pikmin Bloom, and Peridot failed to achieve similar financial success, leading to the company reevaluating its priorities. Instead of focusing on mobile gaming, the company now intends to direct its efforts toward AR technology (and to make Pokémon GO the “very best it can be,” according to the firm).
“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,” John Hanke, CEO of Niantic, commented on the development. “I firmly believe this partnership is great for our players and is the best way to ensure that our games have the long-term support and investment needed to be ‘forever games’ that will endure for future generations.”
“I’m Ed Wu and I have the privilege of leading the Pokémon GO team at Niantic. Today I wanted to share some important news: Pokémon GO will be joining Scopely, a video-game developer and publisher home to a wide range of leading games and talented teams around the world. As it’s always important to me, and our entire game team, that our community understands and is excited by the long-term vision for this game, I want to share why I believe a partnership with Scopely will be a positive step for all of you and the game’s future,” the company announced in an official post. There will be no changes in Pokémon GO’s team, the statement added. This development suggests that Niantic is moving away from traditional mobile game publishing in favor of licensing its AR technology to third parties, and concentrating on AR infrastructure and location-based experiences.
For Scopely, the acquisition presents an opportunity to expand its footprint in the mobile gaming industry, particularly in the AR segment. The company, known for its portfolio of successful mobile games such as Star Trek Fleet Command and Marvel Strike Force, is now poised to enter the AR gaming space with Niantic’s technology and intellectual property. So far, the firm has made a name for itself in acquiring and scaling mobile game franchises, and this latest deal positions the company to capitalize on Niantic’s game development expertise.
