In a significant development in the gaming world, Saudi Arabia’s Public Investment Fund (PIF) has agreed to purchase the gaming division of Niantic for a staggering $3.5 billion (£2.7 billion). The deal highlights the Kingdom’s ongoing efforts to diversify its economy beyond oil revenue, as the gaming industry has become a focal point for investment and growth.
Niantic, known globally for its groundbreaking mobile game Pokémon Go, has captivated millions since its launch nearly a decade ago. The game encourages players to explore the real world by hunting for virtual Pokémon that appear on their mobile screens through augmented reality. This innovative concept has kept Pokémon Go relevant and was reported to have a staggering 30 million monthly players, making it one of the highest-grossing mobile games worldwide.
The acquisition doesn’t stop at Pokémon Go; it also includes other Niantic titles such as Monster Hunter Now and Pikmin Bloom. The acquisition aims to integrate Niantic’s highly skilled workforce into Scopely Inc, a major player in the mobile gaming universe. Recently, Scopely was itself acquired by Savvy Games Group, a subsidiary of the PIF, in a deal worth $4.9 billion in 2023. Scopely’s success can be attributed to popular games like Monopoly Go, which has garnered over 50 million downloads and generated revenues surpassing $3 billion.
As part of the acquisition, Pokémon, a franchise originally developed by Nintendo, Game Freak, and Creatures, will remain under its current ownership. However, these companies have licensed their brand to Niantic, which raises interesting questions about the future direction of Pokémon Go under new management. Ed Wu, the leader of the Pokémon Go team at Niantic, expressed optimism about the transition, stating in a blog post that this shift is a “positive step” for the game’s future. He emphasized the commitment to continually evolve the gaming experience, maintaining that Pokémon Go is a continual work in progress rather than something static.
Saudi Arabia’s foray into the gaming sector is part of a larger strategy to position the nation as a burgeoning hub for the global gaming industry. The Kingdom’s PIF has made substantial investments in major gaming publishers, including Nintendo, Electronic Arts, and Take-Two Interactive. Additionally, Saudi Arabia has emerged as a key player in the esports scene, hosting major tournaments like last year’s Esports World Cup, which featured a lucrative prize pool exceeding $60 million. Furthermore, Riyadh is set to host the upcoming 2027 Olympic eSports Games.
Under the direction of Crown Prince Mohammed bin Salman, the PIF has leveraged Saudi Arabia’s vast oil wealth, investing heavily in various sports to enhance its global stature. This strategy includes a notable acquisition of the English football club Newcastle United in a £300 million deal in 2021. However, these ambitions come with scrutiny, as the Kingdom has faced international criticism over human rights issues, including allegations surrounding the murder of journalist Jamal Khashoggi, as noted in a 2019 UN report.
Despite these challenges, the acquisitions by the PIF showcase Saudi Arabia’s ambition to play a major role in the gaming and entertainment sectors. By investing in companies like Niantic and building on the foundations laid by longstanding franchises like Pokémon, the Kingdom is not only diversifying its economy but also shaping the future of gaming in the region and potentially the world. The coming years will be pivotal in determining how these changes will influence the gaming landscape.
