Saudi Arabia Speeds Up Gaming Hub Vision As It Acquires 'Pokemon Go' Game Developer for £2.7 Billion

Saudi Arabia's bold push into the gaming industry has taken another major step forward with Scopely's substantial acquisition of American game developer Niantic for £2.7 billion ($3.5 billion). Scopely, a subsidiary of Savvy Games Group—funded by Saudi Arabia's sovereign wealth Public Investment Fund—is already renowned for successful mobile games like 'Monopoly Go', 'Marvel Strike Force', and 'Star Trek Fleet Command', and now adds Niantic, famed for the global phenomenon 'Pokémon GO', to its impressive roster.

What Lies Ahead for Niantic?

The significant deal comprises Scopely's £2.7 billion ($3.5 billion) purchase, along with an additional investment of around £270 million ($350 million) from Niantic itself. According to a statement from Scopely, Niantic's entire games team will transition to Scopely, continuing their ongoing projects and development.

In a detailed blog post, Scopely co-CEOs Javier Ferreira and Walter Driver underlined their unwavering commitment to expanding Niantic's beloved franchises. Their goal is to secure these games as 'forever games'—sustained by strong community support and ongoing development. Importantly, Niantic's popular live events, community-building apps, and real-world exploration features will remain a key focus under Scopely's management.

Furthermore, Niantic will spin off its geospatial AI division into a new, independent entity named Niantic Spatial Inc. Led by Niantic founder John Hanke, this new firm will launch with approximately £193 million ($250 million) in funding—£154 million ($200 million) from Niantic's balance sheet and an additional £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, emphasised the natural synergy between the two companies. He highlighted how Niantic's innovative community experiences align seamlessly with Scopely's vision for strong player engagement.

'Few games in the world have delivered the scale and longevity of "Pokémon GO", which reached over 100 million players just last year,' O'Brien said. 'The experience also stands apart for its unique ability to foster in-person connections, with Pokémon GO live events attracting millions of attendees.'

John Hanke, meanwhile, expressed confidence in this partnership, emphasising shared values around live service excellence, player community care, and creative independence.

'Niantic games have always been a bridge connecting people and inspiring exploration,' Hanke stated. '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

Launched in 2016, 'Pokémon GO' remains a global mobile gaming sensation, attracting around 20 million active weekly players. The game consistently ranks among the top 10 mobile games worldwide and sold two million tickets for its 'Pokémon GO Fest' live events in 2024 alone.

Ed Wu, Head of 'Pokémon GO', reassured players in a separate statement that Scopely's support will bolster the game's long-term development, allowing the team substantial creative freedom while maintaining a strong partnership with The Pokémon Company.

'Pokémon GO has always been a work in progress,' Wu explained, '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: £10.3 Billion Growth by 2030

The Niantic acquisition reflects Saudi Arabia's strategic investment in gaming and esports, with projections forecasting industry growth to £10.3 billion ($13.3 billion) by 2030, according to a report by PwC for Savvy Games Group.

To date, Saudi Arabia has already invested over £29.4 billion ($38 billion) in the gaming sector, aiming to generate 39,000 new jobs through the National Gaming and Esports Strategy. With around 67% of the Saudi population (23.5 million individuals) engaged as gamers, the Kingdom is rapidly becoming a prominent international gaming hub.

Additionally, Saudi esports talent, including internationally acclaimed competitors such as MSdossary7 and the Saudi Rocket League team, are achieving global recognition. Landmark projects like the NEOM gaming hub and major upcoming events such as the 2025 Olympic Esports Games further demonstrate the country's dedication to leading the gaming industry.

As Saudi Arabia prepares to host the FIFA World Cup in 2034, its gaming and esports initiatives are poised to become significant drivers of economic growth, marrying cultural innovation with global gaming ambitions.