KATIE HOLT
24/03/2025 - KATIE HOLT
$3.5bn acquisition of Pokémon Go creator boosts Savvy's global presence in the games space

In March 2025, Scopely – a subsidiary of Savvy Games Group - confirmed that it will acquire Niantic’s games business for $3.5bn. The deal will bring Niantic’s game development team, several titles (including Pokémon Go, Monster Hunter Now, and Pikmin Bloom) and two companion apps under Scopely ownership. Niantic’s technology business, including its mapping technology and two augmented reality (AR) titles, will remain independent as Niantic Spatial.

Pokémon Go further legitimises Savvy’s presence in the games space…

Savvy Games Group was established by Saudi Arabia’s Public Investment Fund in 2021 as part of the country’s push to diversify its economy. The company has acquired several games businesses with high growth potential and established success, moving toward the long-term goal of making Saudi Arabia a global hub for gaming. Scopely is the flagship of Savvy’s portfolio: it is home to several franchise-based games, including Monopoly Go! and Marvel Strike Force.

Savvy was on the hunt for a ‘genre-leading’ mobile title to add to Scopely’s roster. With $8.5bn in lifetime player spending, over 100m users in 2024, and players in 190 countries, Pokémon Go complements Savvy’s long-term goals and further legitimises its presence as a global leader in the mobile games space (Scopely).

… and cements its dominance in global esports

Beyond performance, Niantic and Pokémon Go are a good fit for Savvy’s broader gaming ecosystem. The title is renowned for its active community, with players choosing to engage in live physical events – like Pokémon Go Fest. Savvy is a dominant force in esports, and reports ownership of more than 40% of the esports business globally, including the ESL FACEIT Group and a gaming venue business via VOV, both of which can offer support in scaling Pokémon Go’s live events. Niantic and Scopely are also aligned in their IP-centric strategy, with the acquisition welcoming titles from several key franchises owned by the likes of Pokémon, Capcom, and Nintendo.

While Scopely is not acquiring Niantic’s technology, it will onboard the game development team with deep expertise in AR and geolocation. Access to this knowledge is advantageous for external and internal opportunities. Rightsholders looking to create an AR game using their IP will be drawn to Niantic due to its robust reputation and other Savvy subsidiaries can use the expertise to incorporate AR technology into an existing game or create new AR titles. However, successful AR games are rare, with Pokémon Go being one of the exceptions. Niantic itself has struggled to replicate its performance even with the backing of other popular franchises, such as Harry Potter.

Savvy can support Pokémon Go’s longevity and expansion into MENA

For Niantic, the sale is a strategic pivot away from the games sector and a double down on geospatial technology. The financial resources and ongoing maintenance needed to keep AR titles afloat are extremely high. By offloading its games business, Niantic can dedicate all internal resources toward technology - an area of the market that is rapidly changing and developing as artificial intelligence improves. Meanwhile, a buyer such as Savvy can provide stronger support for the game development team through financial backing and broader gaming expertise.

In terms of lifetime revenue, Pokémon Go’s top countries include the US, Japan, Germany, the UK, and Australia (App Magic). While use of the app is strong in North America, Western Europe and Asia, the Middle East and North Africa are lagging. With Savvy’s headquarters in Saudi Arabia, the company can provide specialised MENA support, expanding the reach of Niantic’s existing titles.

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