Niantic May Sell Pokémon Go - What Does it Mean For the Game?
In a breaking set of developments, Niantic seems close to selling off its entire game division, including Pokémon Go, to a Saudi Arabia-controlled buyer for $3.5 billion in the coming weeks.
According to a report from Bloomberg’s Michelle Davis and Cecilia D'Anastasio, Niantic and Scopely, a California-based video game company owned by Savvy Games Group, are discussing a sale centered around Niantic’s game portfolio. The private deal is currently being discussed at $3.5 billion, and there are no indications that something is guaranteed to happen.
Pokémon Go is one of the largest mobile games in the world and is directly tied to the biggest media IP. After becoming a household name after its 2016 launch, the game has experienced sustained success. However, it has faced multiple challenges, and Niantic is often scrutinized for how it handles updates and new content, especially regarding subjects like pricing and accessibility.
Mobile insight company AppMagic (via Pocket Gamer) estimates that Pokémon Go has generated around $8 billion in total gross revenue since it was released and it remains a juggernaut in the mobile space even with some decline. And Pokémon Go, along with the rest of Niantic’s gaming division, would fit right in with Scopely and Savvy Games’ goals.
Why Would Scopely and Savvy Games Group Buy Pokémon Go?
If you don’t know about the Savvy Games Group, it is a large subsidiary of Saudi Arabia’s Public Investment Fund. That fund has the goal of "financing support for projects of strategic significance” and diversifying the economy of Saudi Arabia, which includes significant investments in areas like gaming and esports.
Savvy Games Group has several subsidiary groups beyond Scopely, including the ESL FACEIT Group. It also owns varying stakes ranging from five to 10.2 percent in major gaming companies like Nintendo, Electronic Arts, Take-Two Interactive, Embracer Group, Nexon, and Capcom.
Savvy acquired Scopely in July 2023 and focuses on developing free-to-play games with its own internal studios and external partners, such as Hasbro and Disney. This has seen the company produce multiple global hits like Monopoly Go!, Marvel Strike Force, and Stumble Guys across its subsidiary studios—whether through development or acquisition.
Following the incredible success of Monopoly Go!, which became the fastest mobile title to surpass $3 billion in gross revenue by July 2024, according to Sensor Tower, Savvy noted it was more interested in investing in mobile titles.
According to Bloomberg, Savvy is using Scopely as the “tip of the spear” for its mobile investment and was potentially looking to add a “genre-leading title” to the company’s portfolio as recently as last April. Now it appears that Pokémon Go is among the potential acquisitions.
Related Article: Pokémon Go Partners with MLB for New Events, Exclusive Items, and More
If Scopely does purchase Niantic’s gaming division, it would not only acquire Pokémon Go but also ongoing titles Pikmin Bloom, Ingress, Monster Hunter Now, Peridot, and potentially the Campfire app. Niantic’s other studios, such as the previous co-developer of Marvel Strike Force, Seismic Games would also likely be included in the deal as Niantic could divest from gaming entirely in the potential deal.
How Would Pokémon Go Be Affected By A Sale? Updates and Esports
Outside of potential concerns around Savvy Games Group and its investments, a deal like this could be beneficial for Pokémon Go in the long term as long as integral parts of the game don’t collapse without Niantic’s direct upkeep.
If Scopely keeps close relations with Niantic, which should be easy considering the main offices for both companies are based in California, and strikes a deal to ensure various systems and data continue to flow, Pokémon Go could see a revitalization of sorts in new hands.
Niantic, while also developing games, is a technology company first and has proven that with how often it pushed new updates to Pokémon Go centered around AR features and geospatial data collection. The gameplay has not always been at the forefront of features like Routes and a company with more experience in gaming like Scopely could shift that narrative.
That doesn’t necessarily mean Pokémon Go will get better immediately, and there would be additional concerns surrounding how Scopely would change monetization for the game. Still, there would likely be a renewed focus on gameplay-first development. Think new ways to Raid, a refresh on events, and new mechanics without some of the constraints to feeding Niantic’s larger, real-world ambitions.
Through Scopley, and Savvy’s other subsidiaries, Pokémon Go could also find new life as a competitive game.
While The Pokémon Company still runs a tight ship on Pokémon esports through its Play! Pokémon program, having a direct line to ESL could result in additional Pokémon partnerships and events outside of the Pokémon Championship Series. It isn’t a guarantee, but the extra support and investment for the game could incentivize players to try out the Go Battle League and PvP more.
Right now, competitive Pokémon Go is far behind the main series, Pokémon TCG, and Pokémon UNITE as an esport. Only 220 players competed in Go at the 2024 Pokémon World Championships and the game is largely viewed as an entirely casual experience.
Even without running non-Play! Pokémon events, Scopley and Savvy could advertise the PvP elements of Pokémon Go more than Niantic does currently. Potentially, with overhauls to gameplay mechanics that have remained largely the same since 2018 and actually providing meaningful seasonal rotations and rewards for the GBL.
Scopley could even provide more in-game incentives to get players involved in PvP via online play or attending organized events. That will partially depend on how a potential deal is structured and how a partnership with the likes of TPC and Nintendo evolves post-acquisition, should it happen.
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