Pokémon Go developer Niantic may sell its games division for a mere $3.5 billion

Niantic, the company that developed the wildly popular augmented reality (AR) game Pokémon Go, is reportedly considering selling its video games — and according to a source speaking to Bloomberg, the deal could be worth just $3.5 billion. The company raised additional funding at a $9 billion valuation back in 2021.

Many people still play Pokémon Go, but the game no longer enjoys the same popularity it had during its launch and the peak of the COVID-19 pandemic. There are around 80 million monthly users as numbers reported midway through last year, but that's a steep decline from the game's peak of 232 million active players. During those same heady days, Pokémon Go was generating close to a billion dollars annually; now it's bringing in about half of that.

Pokémon Go was also a breakthrough success Niantic was unable to replicate, despite its follow-ups being essentially reskins of the same AR experience. Harry Potter: Wizards Unite lasted around three years, while NBA All World survived only five months. Pikmin Bloom and Monster Hunter Now are still around, but have never been the cash cows of their older sibling. The company also raised funding in 2021 on the promise of creating a “real-world metaverse,” which has yet to materialize.

Niantic also has not been immune to the broad layoffs affecting the games industry. It dumped eight percent of its workforce and canceled four projects back in 2022. The following year, it laid off another 230 employees and killed a Marvel-related project.

The reported party Niantic is considering selling its games division to is Scopely, which is owned by Savvy Games Group. Savvy Games Group is part of Saudi Arabia’s government-linked Public Investment Fund, which has stakes in EA, Activision, Nintendo and more.

This article originally appeared on Engadget at https://www.engadget.com/ar-vr/pokemon-go-developer-niantic-may-sell-its-games-division-for-a-mere-35-billion-160027485.html?src=rss https://www.engadget.com/ar-vr/pokemon-go-developer-niantic-may-sell-its-games-division-for-a-mere-35-billion-160027485.html?src=rss