Niantic, the innovative company renowned for its groundbreaking augmented reality game Pokémon Go, is reportedly considering the sale of its game development division. The company is said to be in discussions with Scopely, a mobile game developer that is part of the Saudi Arabia-based Savvy Games Group, regarding a potential acquisition of its game development unit for approximately $3.5 million. As of now, neither Niantic nor Scopely has responded to requests for comments on this development.
Niantic has distinguished itself as one of the few companies adept at leveraging augmented reality technology to create engaging gaming experiences. The company’s inaugural title, Ingress, received acclaim for its innovative approach to territory control, which was deeply rooted in real-world geography. However, it was the release of Pokémon Go in 2016 that catapulted Niantic into the limelight, transforming it into a global sensation almost overnight.
While Niantic has launched several subsequent titles, none have achieved the monumental success of Pokémon Go. In 2022, the company faced challenges that led to a restructuring, resulting in the layoff of 8% of its workforce and the cancellation of four projects, including the much-anticipated Harry Potter: Wizards Unite. The following year, in 2023, Niantic further reduced its staff by laying off 230 employees and scrapping its NBA and Marvel-themed games.
In a bid to innovate and expand its offerings, Niantic updated its Scaniverse app last year, enabling users to create 3D models of real-world objects and share this data with developers. In November, the company announced its ambition to develop a comprehensive geospatial model that would utilize machine learning to analyze and connect various scenes across the globe, enhancing the interplay between the digital and physical worlds.
