The gaming industry is bracing for a seismic shift. Niantic Inc., the company behind the mobile gaming phenomenon Pokémon Go, is reportedly preparing to sell its games division to Saudi Arabia-owned Scopely Inc. for a staggering $3.5 billion, according to Bloomberg. The move marks a turning point for a company that once redefined mobile gaming and augmented reality. Niantic has not yet responded to requests for comment.
From Mapping to Gaming Glory
John Hanke wasn’t always in the gaming business. Back in 2001, he co-founded Keyhole, a company that would later be instrumental in the creation of Google Earth and Google Maps. His expertise in mapping technology became the foundation for what would eventually become Niantic.
In 2010, Hanke led a Google team tasked with exploring the potential of augmented reality (AR). This effort resulted in Ingress, an ambitious AR mobile game that launched in 2013. The game gathered a respectable seven million players but was more of a stepping stone than a blockbuster hit.
Then came Pokémon Go. Released in 2016 with backing from Google, Nintendo, and The Pokémon Company, it became a cultural phenomenon. The game shattered records, amassing 500 million downloads in its first year and sending players into the streets in search of virtual creatures.
A Game That Changed the World
Few mobile games have had an impact quite like Pokémon Go. For months, parks, streets, and city centers were flooded with players chasing digital creatures through their phone screens.
The numbers were mind-blowing:
- More than 500 million downloads in 2016 alone.
- An estimated $6 billion in total revenue since launch.
- Players walked a combined 15.8 billion kilometers within the first year of release.
Local businesses benefited, using in-game mechanics to attract foot traffic. Cities saw unexpected surges in tourism. Even law enforcement had to adapt, dealing with everything from trespassing players to accidents caused by distracted gaming.
The Decline and Tough Decisions
After the initial frenzy, Pokémon Go maintained a loyal fan base but could never replicate its launch-year success. Meanwhile, Niantic attempted to replicate the formula with other AR games, including Harry Potter: Wizards Unite and Pikmin Bloom, but none came close to Pokémon Go’s numbers.
Then came the pandemic. The global shutdown in 2020 was disastrous for a game that relied on outdoor exploration. Niantic made adjustments to keep players engaged, but by 2023, the company was struggling. It laid off 230 employees—about 25% of its workforce—and canceled several projects. CEO John Hanke acknowledged that the AR market was evolving “more slowly than anticipated.”
Now, Niantic seems to be shifting its focus away from gaming altogether.
Back to Its Mapping Roots?
While Pokémon Go put Niantic on the gaming map, its real ambition may have always been elsewhere. The company has been using data from its games to build sophisticated geospatial models—essentially, digital recreations of the real world.
In November 2023, Niantic researchers published an update on their Large Geospatial Model, a machine-learning project designed to analyze real-world scenes and connect them globally. This technology could have wide-ranging applications beyond gaming, from urban planning to autonomous vehicles.
With the games division potentially off its hands, Niantic may return to what it started: revolutionizing the way we see and navigate the physical world.
