In a landmark deal set to reshape the mobile gaming and augmented reality (AR) landscape, Scopely is acquiring Niantic’s gaming business for $3.5 billion . This acquisition includes popular titles such as “Pokémon GO,” “Pikmin Bloom,” and “Monster Hunter Now” . Simultaneously, Niantic is spinning off its geospatial AI business into a new entity named Niantic Spatial Inc. . This strategic shift marks a significant evolution for both companies, with Scopely focusing on enhancing its live service mobile games and Niantic concentrating on pioneering advancements in geospatial AI technology. The deal is expected to close in 2025, pending customary regulatory review.
Scopely’s Strategic Expansion into Live Service Games
Scopely, known for its expertise in operating live service games such as “MONOPOLY GO!,” “Star Trek Fleet Command,” and “Marvel Strike Force,” aims to leverage its capabilities to further develop Niantic’s gaming franchises. Tim O’Brien, chief revenue officer and board member of Scopely, emphasized the company’s commitment to cultivating meaningful communities through shared play. Scopely plans to empower the existing Niantic game teams to continue developing the games according to their established vision, ensuring continuity and innovation for players . Scopely’s acquisition also includes Niantic’s companion apps and services Campfire and Wayfarer.
Niantic’s Pivot to Geospatial AI with Niantic Spatial Inc.
Niantic is spinning off its geospatial AI business into Niantic Spatial Inc. to focus on developing advanced spatial intelligence technologies. Led by John Hanke, Niantic Spatial Inc. will be funded with $250 million in capital , including $200 million from Niantic and a $50 million investment from Scopely. The company’s mission is to build spatial intelligence that helps people better understand, navigate, and engage with the physical world.
Niantic Spatial is developing the Niantic Spatial Platform , which integrates spatial computing, Extended Reality, Geographic Information Systems, and Artificial Intelligence. This platform aims to create immersive experiences that seamlessly blend the digital and physical worlds with centimeter-level precision, catering to diverse industry applications such as manufacturing, logistics, and entertainment. Additionally, they are developing a Large Geospatial Model powered by large-scale machine learning to enable machines to understand and navigate the physical world , utilizing a database of over 30 billion posed images. Niantic Spatial will continue to own and operate real-world AR games Ingress Prime and Peridot.
Impact on Players and the Future of Gaming
Both Scopely and Niantic have emphasized their commitment to maintaining the quality of existing games and supporting player communities. Players can anticipate ongoing investment from Scopely, driving further improvements and innovations to these experiences. The acquisition ensures that games like “Pokémon GO” will receive the long-term support needed to thrive and evolve . Ed Wu, senior VP of “Pokémon GO,” expressed confidence that with Scopely’s commitment, the game will continue to inspire people to discover Pokémon in the real world.
Financial Details of the Acquisition
The acquisition of Niantic’s gaming business by Scopely is valued at $3.5 billion, with an additional $350 million of cash from Niantic being distributed as part of the deal . Niantic Spatial Inc. will be funded with $250 million of capital. The deal is expected to close in 2025, subject to customary closing conditions and regulatory review.