Niantic, ‘Pokémon Go’ Creator, Divests Gaming Division to Focus on Geospatial AI and AR Technology

Niantic, the creative force behind the phenomenally popular Pokémon Go, has recently made headlines with the announcement of a significant business move. They’ve sold their gaming division to Scopely, a transaction priced at an eye-popping $3.85 billion. This shift aligns with a strategic pivot towards enhancing their AI-driven geospatial technology and augmented reality (AR) capabilities.

As part of this colossal deal, Scopely, a mobile game developer backed by Saudi investment, now takes the reins of some of Niantic’s flagship gaming titles. These include the eternally popular Pokémon GO, along with Pikmin Bloom and Monster Hunter Now. The original developer teams responsible for these titles will also join Scopely, ensuring continuity in the gaming experience.

In the wake of offloading its gaming branch, Niantic is spinning off a new company, Niantic Spatial. This new entity is set to hone in on crafting advanced geospatial AI technologies that merge location data with the robust power of machine learning and AI. The mission of Niantic Spatial is ambitious: to craft “spatial intelligence” tools that enhance how individuals understand, navigate, and interact with their surroundings, particularly through enterprise applications.

Driving the newly established Niantic Spatial is John Hanke, buoyed by a substantial $250 million funding injection; $200 million from Niantic itself and an additional $50 million from Scopely. Their focus is clear – leveraging their existing Scaniverse and Visual Positioning System (VPS) technology to deliver AI-driven solutions tailored for industries such as logistics, construction, and entertainment.

Scaniverse, acquired in 2021 from Toolbox AI, stands out as a 3D scanning marvel using Gaussian splatting to generate intricately detailed digital replicas of physical objects and setups. Demonstrating its potential, the company released “Into the Scaniverse” in 2025 for the Quest platform, allowing users to scan environments with their smartphones and explore them through VR headsets.

On the other hand, the VPS, introduced in 2022, is a geospatial system that claims unparalleled precision in real-world positioning and AR navigation, boasting accuracy to the centimeter. This cutting-edge tech has already been woven into several of Niantic’s location-centric games like Pokémon GO, Ingress, and Peridot.

What remains somewhat of a mystery, though, is the progress on Niantic’s venture into AR hardware. Back in late 2022, the company disclosed a collaboration with Qualcomm on developing an AR headset leveraging the Snapdragon AR2 platform. However, updates have since been sparse, leaving enthusiasts in suspense.

Despite this, Niantic’s pivot represents a substantial transition from traditional mobile gaming to pioneering geospatial AI and AR technologies aimed at enterprises. Rather than developing games, the company now focuses on perfecting its Visual Positioning System and 3D mapping technologies, laying the groundwork for the future generation of AR experiences.