Niantic, the developer behind the groundbreaking augmented reality game Pokémon Go, is reportedly exploring the sale of its game development unit. Industry sources have informed Bloomberg that Niantic is in talks with mobile game developer Scopely, a subsidiary of Saudi Arabia’s Savvy Games Group. The potential transaction is estimated to be valued around $3.5 million. Representatives from both companies have yet to offer official comment.
Niantic has achieved remarkable success in leveraging augmented reality technology for gaming. Its inaugural title, Ingress, garnered acclaim for its novel approach to location-based gameplay. However, Pokémon Go catapulted the company to unprecedented heights upon its release in 2016, becoming a global phenomenon.
Despite the success of Pokémon Go, subsequent titles have not attained the same level of popularity. In 2022, Niantic downsized by 8%, closing four projects, including Harry Potter: Wizards Unite. This was followed by a further round of layoffs in 2023, affecting 230 employees, and the cancellation of NBA and Marvel-related games.
In recent developments, Niantic enhanced its Scaniverse app, enabling users to generate models of physical objects and contribute data to developers. The company also announced its ambition to establish a comprehensive geospatial model, utilizing machine learning to comprehend and link global scenes.
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