Niantic, the San Francisco-based company renowned for its augmented reality sensation Pokémon Go, is reportedly seeking to sell its games division. Known initially for its innovative title Ingress, Niantic captured global attention in 2016 with Pokémon Go, a game that became a cultural phenomenon almost overnight. However, recent developments indicate a shift in strategy for the company as it navigates a challenging business landscape.
In 2023, Niantic laid off 230 employees and canceled its NBA and Marvel-related games, signaling a need to streamline operations. This follows a previous reduction in workforce by 8% in 2022, during which the company also shuttered four projects, including Harry Potter: Wizards Unite. Despite releasing several subsequent titles, none have managed to replicate the monumental success of Pokémon Go.
Niantic is reportedly in talks to sell its game development business to Scopely, a mobile game developer owned by Saudi Arabia-based Savvy Games Group. The potential deal is estimated at approximately $3.5 million. This strategic move reflects Niantic's intent to refocus its resources and explore new avenues beyond traditional game development.
Despite the challenges within its gaming division, Niantic continues to innovate in the realm of augmented reality. The company recently updated its Scaniverse app, empowering users to create detailed models of real-world objects. This initiative aligns with Niantic's ambition to build an expansive geospatial model. By utilizing machine learning, the company aims to "understand a scene and connect it to millions of other scenes globally," thereby enhancing its games and applications.
The decision to explore the sale of its games division underscores Niantic's broader vision for the future. The company's pursuit of a comprehensive geospatial model suggests a commitment to leveraging technology beyond gaming. While Pokémon Go remains a hallmark of its success, Niantic appears poised to redefine its role in the industry.
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