Scopely Acquires Niantic’s Gaming Division for $3.5 Billion
In a remarkable development in the gaming industry, Niantic has confirmed the sale of its gaming division to Scopely, a subsidiary of Saudi Arabia’s Savvy Games Group, in a staggering deal valued at $3.5 billion. This acquisition includes all of Niantic’s mobile titles and their associated development teams.
Key Titles Transitioning to Scopely
The acquisition, announced today, grants Scopely rights to some of Niantic’s most successful games, including the globally popular Pokémon GO, Pikmin Bloom, and Monster Hunter Now, in addition to various companion applications and services.
Current Performance and Future Outlook
Despite facing challenges following its impressive launch, Pokémon GO continues to maintain a substantial player base, boasting over 20 million weekly players and accumulating a remarkable 100 million total players by 2024. Niantic’s overall gaming division reportedly attracts more than 30 million monthly players and is projected to generate around $1 billion in revenue this year.
Statements from Company Leaders
Tim O’Brien, Chief Revenue Officer and Board Member of Scopely, expressed excitement about the acquisition: “Scopely has always been focused on cultivating meaningful communities through a shared love of play, and the Niantic games organization is one of the best in the world at this endeavor. We are extremely inspired by what the team has built over the last decade, delivering innovative experiences that captivate a vast, enduring global audience and get people out in the real world. We look forward to further accelerating the team’s creativity through our partnership.” Read more here.
Impact of Recent Layoffs
Niantic has faced significant layoffs in recent years, with over 230 employees affected in 2023 alone, and the cancellation of a major Marvel-based AR game. Nevertheless, the current acquisition appears to safeguard the existing workforce, with announcements confirming that the entire Niantic gaming division, along with its veteran leaders Kei Kawai and Ed Wu, will be retained by Scopely.
Future Developments and Community Assurance
John Hanke, Niantic’s founder and CEO, voiced optimism about the acquisition, stating, “Scopely shares our focus on building and operating incredible live services, has exceptional experience working with the world’s biggest and most beloved intellectual properties, and cares deeply about its player communities and game-making teams. 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.”
While the exact changes for Niantic’s games under Scopely’s management remain uncertain, significant modifications, if any, may take time to materialize, leaving players eager for updates on the future of their favorite titles.
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