TOKYO - A Saudi Arabia-backed startup has acquired the Pokémon GO game business, underscoring growing global interest in Japan-origin intellectual property (IP) and its international expansion prospects.
In March, the gaming industry was rocked by the announcement that Niantic, the American developer behind Pokémon GO, would sell most of its gaming business. The buyer is a startup company backed by Saudi Arabia. This deal raises questions about why Japanese IP is drawing such attention now and what the broader implications may be.
Niantic, though an American company, has deep ties to Japan. From its early days, Nintendo invested in Niantic, and so did The Pokémon Company, a Nintendo affiliate. The two companies jointly developed Pokémon GO. Now, about a decade later, both firms have successfully exited the investment, securing returns. This is a rare case and may serve as a model for monetizing other Japanese IP holdings.
The decision by Niantic to sell its long-popular Pokémon GO business stems from its strategic shift. Niantic originated as a spin-off from Google's mapping division. According to CEO John Hanke, in addition to its gaming operations, Niantic owns a highly sophisticated 3D mapping platform, which is becoming increasingly valuable. The company intends to focus its resources on developing this technology.
Meanwhile, Scopely, which acquired the Pokémon GO business for 3.5 billion dollars, or roughly 500 billion yen, sees strong growth potential. According to Scopely's two co-CEOs, whom Nikkei interviewed, Pokémon GO remains highly lucrative. Although neither of them personally plays the game, they noted that Niantic's titles still attract about 30 million users worldwide each month. In 2024, annual revenue reached approximately 1 billion dollars, or about 150 billion yen. Despite previous restructuring at Niantic raising concerns, the business remains solidly profitable. Scopely believes further growth can be achieved by focusing its investments here.
The acquisition also reflects Scopely’s broader strategy to strengthen ties with Japanese IP holders. Both co-CEOs emphasized their strong desire to deepen relationships with Japanese partners, highlighting the global appeal and commercial promise of Japan-origin intellectual property.
Source: テレ東BIZ
