Scopely’s $3.5 Billion Gamble: Acquiring Niantic’s Gaming Empire
Scopely, the mobile gaming company behind popular titles like Monopoly Go, Stumble Guys, and Marvel Strike Force, has finalized a $3.5 billion deal to take over Niantic’s games division. Niantic is best known for creating hit augmented reality games such as Pokémon Go, Pikmin Bloom, and Monster Hunter Now. As part of the agreement, Scopely will also gain control of Niantic’s social apps, Campfire and Wayfarer, as well as its live operations for in-person experiences. Additionally, Niantic will distribute an extra $350 million in cash, bringing the total value for its shareholders to $3.85 billion.
Both companies have reassured players that their development teams have laid out detailed plans to steer future growth. Leading the charge are industry veterans Kei Kawai, Niantic’s Chief Product Officer, and Ed Wu, the head of Pokémon Go. In a recent blog post, Wu shared, “I won’t claim that Pokémon Go will stay exactly the same—it’s always been a game that evolves. But the way we build and improve it will stay true to our vision, and we’re committed to making the experience even better for everyone.” He also highlighted Scopely’s “deep respect” for Niantic’s team and community, emphasizing that the entire team will stay together under this new partnership.
Niantic Spatial: Pioneering the Future of Geospatial AI Technology
One of the most iconic mobile games ever created, Pokémon Go, is built around the wildly popular Pokémon franchise and first launched in 2016. Nearly ten years later, the game continues to thrive, with over 20 million weekly active players spanning more than 190 countries and regions. It has consistently ranked among the top 10 mobile games every year since its release.
In a blog post, Niantic revealed that alongside the Scopely deal, it will be spinning off its geospatial AI division into a new entity called Niantic Spatial. This new company will be led by John Hanke and will be backed by $250 million in funding. Of this amount, $200 million will come from Niantic’s own resources, while Scopely will contribute an additional $50 million. All of Niantic’s existing investors will retain their stakes in Niantic Spatial as shareholders.
“Niantic Spatial aims to pioneer the future of geospatial AI by developing advanced spatial intelligence that empowers people to better understand, navigate, and interact with the physical world,” the blog post states. “At its core, Niantic Spatial is driven by a cutting-edge, third-generation digital map that captures the world’s details with unprecedented precision. This map enables both humans and machines to interpret and engage with the environment in entirely new ways. It’s a foundational layer that will allow AI to meaningfully connect with and operate within the real world.”
The company’s launch platform is tailored for a wide range of industries, offering solutions that enhance fields like manufacturing, warehousing, logistics, construction, tourism, entertainment, and education. It achieves this through features such as precise tracking, AR-guided navigation, and real-time 3D spatial visualization.
Niantic will continue to manage its flagship AR game, *Ingress*, as well as *Peridot*. However, as highlighted by tech observer 404 Media, one question left unanswered in the announcements is the fate of the location data collected from millions of players in Niantic’s real-world exploration games. For instance, Pokémon Go players alone have collectively logged over 30 billion miles of exploration, according to Niantic and Scopely. The outlet points out that Scopely’s direct investment in Niantic Spatial hints at a potential interest in monetizing player location data and AR camera scans.
Data Privacy Concerns: Scopely’s Saudi Ties and Player Security
404 Media raised concerns about the lack of clarity regarding how player data will be used moving forward, noting that while Scopely is headquartered in the U.S., it is fully owned by Savvy Games, a Saudi Arabian company. Savvy Games, in turn, is controlled by the Saudi government’s Public Investment Fund. In its 2024 World Report, Human Rights Watch criticized Saudi Arabia for its “egregious” human rights record, citing the government’s surveillance of social media platforms like X (formerly Twitter) to track and target activists and political opponents. Additionally, Saudi Arabia has enacted data protection laws that grant government agencies broad authority to access personal data under vague “security” justifications.
Following the publication of the article, Scopely issued a statement to 404 Media, emphasizing, “Protecting player privacy and data is a top priority for both Scopely and Niantic. Player data has always been, and will continue to be, managed in compliance with strict data privacy laws and regulations. All data is stored exclusively on U.S.-based servers. We have never sold data to third parties, nor will we ever do so. Following the acquisition, player data will remain stored in the U.S. Scopely operates independently and autonomously from Savvy and the PIF, maintaining full control over its technology ecosystem.”
Scopely also clarified that precise location data for Niantic players is retained only for a limited period and is used solely for critical game operations, such as preventing cheating and resolving bugs. Once this data is no longer needed, it is permanently deleted from Niantic’s systems. Additionally, players have the option to voluntarily share scans or videos of public spaces, which are anonymized before being provided to Niantic Spatial.
