Saudi Arabia’s PIF Acquires Pokémon Go Developer Niantic’s Gaming Division for $3.5 Billion

Saudi Arabia’s Public Investment Fund (PIF) is making another major move in the gaming industry, purchasing the gaming division of Niantic for $3.5 billion (£2.7 billion). The deal includes the hit augmented reality (AR) mobile game Pokémon Go and other Niantic titles such as Monster Hunter Now and Pikmin Bloom.

Despite launching nearly a decade ago, Pokemon Go remains one of the world’s most popular and highest-grossing mobile games, with an active player base of 30 million users per month. The acquisition marks another significant step in Saudi Arabia’s strategy to expand its influence in the global gaming industry, an area where it has invested billions in recent years.

What the Deal Includes

As part of the acquisition, Niantic’s gaming division will now be integrated into Scopely Inc., a mobile gaming company that Saudi PIF’s subsidiary, Savvy Games Group, bought for $4.9 billion in 2023.

Scopely is one of the biggest names in mobile gaming. It is known for titles like Monopoly Go, which has been downloaded over 50 million times and generated more than $3 billion in revenue.

While Pokemon Go remains Niantic’s flagship game, the acquisition also includes its employees and development teams, ensuring the continuity of game development under new ownership.

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What This Means for Pokémon Go

The future of Pokemon Go under Saudi ownership remains uncertain, but Ed Wu, who leads the game’s development at Niantic, believes the transition is a “positive step”.

“Pokémon Go is more than just a game to me, it’s my life’s work,” Ed Wu said in a blog post.

“I won’t say that Pokémon Go will remain the same because it has always been a work in progress. But how we create and evolve it will remain unchanged, and I hope that we can make the experience even better.” Ed Wu added. 

Niantic has licensed Pokémon Go from Nintendo, Game Freak, and Creatures, which jointly own the Pokémon brand. However, Niantic’s control over the game’s development will now be influenced by Scopely and, indirectly, Saudi Arabia’s PIF.

Saudi Arabia’s Expanding Influence on Gaming

The purchase of Niantic’s gaming division is just the latest in Saudi Arabia’s aggressive push into the gaming industry. The PIF already holds significant stakes in major gaming companies, including Nintendo, Electronic Arts (EA), and Take-Two Interactive.

Additionally, Saudi Arabia has become a major player in eSports, hosting major tournaments such as the eSports World Cup, which had a record-breaking $60 million prize pool in 2023. Riyadh is also set to host the Olympic eSports Games in 2027.

A Controversial Investment Strategy

While Saudi Arabia continues investing heavily in entertainment, sports, and gaming, its government remains controversial. PIF, which is controlled by Crown Prince Mohammed bin Salman, is linked to a state accused of human rights violations.

A 2019 UN report stated that the Saudi government was responsible for the death of journalist Jamal Khashoggi, a vocal critic of the regime. The Saudi government has denied the allegations.

Despite these concerns, Saudi Arabia’s investment in gaming is reshaping the industry, positioning it as a dominant force in mobile gaming and eSports for years to come.