Saudi Investment Fund Pays $3.5 Billion for Pokémon Go Rights.
Saudi Arabia's Public Investment Fund (PIF) is set to invest $3.5 billion (£2.7 billion) to acquire the gaming division of Niantic, the company behind the popular mobile game Pokémon Go.
In Pokémon Go, players explore the real world to find and catch virtual creatures that pop up on their screens through augmented reality.
Even though it debuted nearly ten years ago, Pokémon Go remains one of the top-grossing mobile games globally, boasting around 30 million active players each month.
This acquisition is part of Saudi Arabia's broader strategy to enhance its gaming sector, which has seen significant financial investment in recent years.
The deal also includes Niantic's other titles, like Monster Hunter Now and Pikmin Bloom, along with the teams that create them.
These teams will join Scopely Inc., which was acquired by PIF's Savvy Games Group for $4.9 billion in 2023.
Scopely is a major player in mobile gaming, with its hit game Monopoly Go achieving over 50 million downloads and generating more than $3 billion in revenue.
The Pokémon brand is co-owned by Nintendo, Game Freak, and Creatures, which granted Niantic the rights to develop the game.
Ed Wu, who heads the Pokémon Go team at Niantic, expressed in a blog post that he views this acquisition as "a positive step" for the game's future.
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"Pokémon Go is more than just a game to me, it's my life's work," he said.
"I won't say that Pokémon Go will remain the same, because it has always been a work in progress.
"But how we create and evolve it will remain unchanged, and I hope that we can make the experience even better."
Saudi Arabia is stepping up its game in the gaming world.
The Public Investment Fund (PIF) has invested in some of the industry's biggest names, including Nintendo, Electronic Arts, and Take-Two Interactive.
They've also made a splash in eSports, hosting major events like last year's eSports World Cup, which boasted a prize pool exceeding $60 million.
Looking ahead, Riyadh is set to host the Olympic eSports Games in 2027.
Thanks to its oil riches, the PIF manages hundreds of billions in assets and has been pouring money into various sports, including golf, boxing, and football, highlighted by their £300 million acquisition of Newcastle United in 2021.
The fund is overseen by Prince Mohammed bin Salman, whose government has faced accusations of human rights abuses.
A 2019 UN report indicated that the Saudi state was responsible for the death of journalist Jamal Khashoggi, who was critical of the regime. Saudi Arabia has consistently denied these allegations.
While Saudi Arabia’s $3.5 billion investment in Niantic’s gaming division demonstrates a strong interest in dominating the global gaming sector, questions remain. Critics worry about the long-term impact of such investments on the gaming industry and the potential consequences for the future direction of games like Pokémon Go.
Additionally, the PIF’s ties to controversial political figures and their history of human rights concerns cast a shadow over the investment. As the Saudi gaming empire grows, many will be watching closely to see how it balances business ambitions with ethical considerations.
