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Saudi Arabia’s Public Investment Fund (PIF) will invest $3.5 billion (£2.7 billion) to acquire the gaming division of Niantic, the developer behind the popular mobile game Pokémon Go.
The game encourages players to explore the real world and hunt for collectible creatures, which appear on their phone screens via augmented reality.
Although it was launched nearly a decade ago, Pokémon Go remains one of the highest-grossing mobile games globally, with 30 million active monthly players.
This deal is another significant step in Saudi Arabia’s ongoing efforts to expand its gaming industry, which has seen billions of pounds in investment in recent years.
Niantic’s other games, including Monster Hunter Now and Pikmin Bloom, are also part of the acquisition, along with the employees responsible for developing them.
These will be integrated into Scopely Inc, which was itself acquired by PIF subsidiary Savvy Games Group for $4.9 billion in 2023.
Scopely is a major player in mobile gaming, with its most popular title, Monopoly Go, having been downloaded over 50 million times and generating more than $3 billion in revenue.
Pokémon is jointly owned by Nintendo, Game Freak, and Creatures, which licensed the brand to Niantic to develop the game.
Ed Wu, who leads the Pokémon Go team at Niantic, expressed in a blog post that he viewed the move as “a positive step” for the future of the game.
“Pokémon Go is more than just a game to me; it’s my life’s work,” he stated.
“I won’t say that Pokémon Go will stay the same, because it has always been a work in progress. But how we create and evolve it will remain unchanged, and I hope we can make the experience even better.”
Saudi Arabia is increasingly establishing itself as a powerful force in the gaming industry.
The Public Investment Fund (PIF) holds stakes in some of the largest publishers in the gaming industry, including Nintendo, Electronic Arts, and Take-Two Interactive.
Saudi Arabia has also made significant strides in the eSports sector, hosting major events like last year’s eSports World Cup, which featured a prize pool exceeding $60 million.
Riyadh is set to host the 2027 Olympic eSports Games, further solidifying its position in the global gaming and eSports landscape.
Saudi Arabia’s Public Investment Fund (PIF) manages hundreds of billions in assets, fueled by the country’s oil wealth. It has been making significant investments in various sports, including golf, boxing, and football, with notable moves such as the £300 million purchase of Newcastle United in 2021.
The fund is controlled by Prince Mohammed bin Salman, the country’s leader, whose government has faced accusations of human rights violations.
A 2019 UN report concluded that “the state of the Kingdom of Saudi Arabia is responsible” for the death of journalist Jamal Khashoggi, who was an outspoken critic of the government.
Saudi Arabia has consistently denied any involvement in his killing.
