Saudi Arabia’s plan to strongly support the gaming industry is still advancing. Scopely, a subsidiary company of Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), spent US$3.5 billion to acquire the video game division of Niantic Labs, a well-known game development company. Scopely said in a press statement that the acquisition involves Niantic Labs' entire game development team, including the development teams of well-known games such as "Pokemon GO", "Monster Hunter Now" and "Pikmin Bloom".
Scopely is the world's second largest mobile game developer. In April 2023, SavvyGamesGroup, wholly owned by PIF, acquired Scopely for US$4.9 billion.
The acquisition is in line with Saudi Arabia’s ambition to create a global gaming and e-sports hub. The previously announced national strategy hopes that the gaming industry will contribute US$13 billion to gross domestic product by 2030.
"There are few games in the world that can reach the scale and longevity of Pokémon Go, which had more than 100 million users playing the game last year," said Tim O'Brien, chief revenue officer and board member of Scopely.
Although Pokémon GO was released nearly 10 years ago, it remains one of the most popular games in the world, with more than 20 million weekly active players.
Niantic Labs' gaming business generated more than $1 billion in revenue in 2024.
NianticLabs said in a press release on the same day that after selling its gaming business, the company will spin off its geospatial artificial intelligence business into a new company called NianticSpatial, led by its founder and CEO John Hanke.
The spun-off company will receive $250 million in funding, with $200 million coming from Niantic's balance sheet and $50 million from Scopely's investment.
Since Saudi Arabia released its 2030 vision, Saudi Arabia has been actively promoting the development of the gaming industry, including investing in world-renowned gaming companies. PIF already holds shares in major global game companies such as Nintendo, Electronic Arts and Take-Two Interactive. In 2024, Saudi Arabia will also host the E-Sports World Cup, with prize money exceeding US$60 million.