Since its launch in 2016, Pokemon GO revolutionized the way we play Pokemon and the way many of us use our mobile devices. Thanks to this game, millions of players took to the streets in search of virtual creatures, turning plazas, parks, and even supermarkets into authentic Pokemon battlegrounds, the dream of every Pokemon trainer! Now, almost a decade later, the game is about to change hands, and the new buyer isn’t exactly a household name in the gaming industry: Saudi Arabia.
Yes, this country has closed a multi-million-dollar deal to acquire a portion of Niantic’s business, the company behind Pokemon GO, through Scopely, a video game studio they acquired in 2023. Why is Saudi Arabia investing so heavily in this sector? And what does this mean for the future of the game? We’ll tell you more below!
What is “Pokemon GO”?
This augmented reality video game for mobile devices merges the real world with the Pokemon universe. Everything works through geolocation technology, and players can explore their surroundings, capture virtual creatures, and participate in battles and events.
For those who have been throwing Poké Balls and exploring streets, parks, and plazas since day one, Pokemon Go is more than just a game: it’s a collection of memories. From that 2016 rush, when everyone gathered at PokeStops and gyms, to the legendary community days when every catch had its own story. It’s the game that made us run through the rain to catch a shiny Dratini, that turned us into explorers of our own city, and that gave us unexpected friendships during mass raids. Almost ten years have passed, but the magic remains intact.
A multi-million-dollar deal
The $3.5 billion deal ensures the partial acquisition of Niantic’s business. This means that, although Pokemon Go will change management, The Pokemon Company will continue to own the intellectual property in case things go wrong.
The acquired assets also include ‘Pikmin Bloom’ and ‘Monster Hunter Now,’ as well as key technological tools such as Wayfarer and Campfire. The transaction is subject to regulatory approval, but Scopely has already confirmed that it will retain the original developers, ensuring the continuity of the games.
Why is this sector of interest to Saudi Arabia?
Saudi Arabia has been investing in the video game industry in recent years with the aim of reducing its dependence on oil (given that it is one of the main oil-producing countries) and thus diversifying its economy.
With this investment, the country plans to allocate more than $40 billion to the video game industry, seeking to consolidate its position as a key player in digital entertainment by 2030.
So far, it already includes hits like ‘Monopoly GO’, ‘Stumble Guys’, and ‘MARVEL Strike Force’, and will now also add Pokemon GO.
What will happen to Pokemon Go?
Clearly, with such a significant sale, users have been wondering what will happen to the game and if anything will change in its form. For now, Scopely assures that there will be no major changes (in the short term), so there’s no need to worry. However, they don’t rule out the possibility that the business model will be based on monetization in future updates.
And what about Niantic?
After sweeping Pokemon GO in its first year with 500 million players, Niantic saw its success plummet during the lockdowns. The company suffered a series of setbacks, cancelling games like Transformers: Heavy Metal and internal projects, in addition to laying off more than 300 employees in 2023. Now, with its future at stake, the big question is: if they’re leaving their greatest success behind, what do they have up their sleeves? Something no one expected: they’re going to redirect their focus toward geospatial AI. The company will transform its technology into Niantic Spatial Inc., focusing on developing next-generation maps.
We’ll have to wait and see how Saudi Arabia fares in this new market, with which they aim, little by little, to abandon their dependence on black gold.
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