Niantic Divests Gaming Division to Focus on Geospatial AI and AR Technology

Niantic, the renowned developer known for Pokémon Go, is making headlines with the sale of its gaming division to Scopely for a hefty $3.85 billion. This move, which follows a Bloomberg report, marks a strategic shift for the company as it pivots towards advancements in AI-driven geospatial and augmented reality (AR) technologies.

In this significant deal, Saudi Arabia’s Scopely will acquire several popular Niantic titles, including Pokémon GO, Pikmin Bloom, and Monster Hunter Now. Along with the games, the original development teams will join Scopely, ensuring continuity for these beloved franchises.

The transaction has also paved the way for Niantic to launch a new entity, Niantic Spatial. This spin-off will harness geospatial AI technology, blending location-based insights with cutting-edge machine learning and AI.

Niantic Spatial’s mission is to develop “spatial intelligence” designed to enhance how we perceive, navigate, and interact with the physical world. The company plans to expand the applications of its geospatial AI and AR tech beyond gaming, targeting various sectors such as logistics, construction, and entertainment.

Leading the charge is John Hanke, with Niantic Spatial receiving $250 million in funding—$200 million from Niantic and an additional $50 million from Scopely. The focus will be on AI-driven solutions for industries, building on existing technologies like Scaniverse and the Visual Positioning System (VPS).

Scaniverse, acquired from Toolbox AI in 2021, is a 3D scanning tool that transforms real-world objects and environments into highly detailed digital models using Gaussian splatting. To showcase this tech, Niantic recently unveiled Into the Scaniverse (2025) for Quest, allowing users to scan their surroundings via smartphone and explore in VR.

The Visual Positioning System, launched in 2022, offers precise real-world location tracking and AR navigation, boasting accuracy down to the centimeter. It’s already been integrated into many of Niantic’s location-based games, such as Pokémon GO, Ingress, and Peridot.

However, Niantic’s shift has left questions about its AR hardware endeavors. Late in 2022, Niantic teamed up with Qualcomm to work on an AR headset based on the Snapdragon AR2 platform. Yet, updates on this collaboration have been sparse since then. The concept was intended to inspire other manufacturers to create AR devices for outdoor use.

Despite the industry buzz, the sale unmistakably signals Niantic’s transition from gaming to focusing on geospatial AI and AR solutions for enterprise. By prioritizing developments in its Visual Positioning System, 3D mapping, and AI-powered AR platforms, Niantic aims to lay the groundwork for future AR innovations.