Saudi Arabia’s Public Investment Fund (PIF) has made yet another major acquisition in the gaming industry, purchasing the gaming division of Niantic, the developer behind Pokémon Go, for $3.5 billion. This move not only signals Saudi Arabia’s deepening influence in the global gaming sector but also raises critical questions regarding data privacy, technological control, and geopolitical shifts in entertainment.
Pokémon Go, a game that revolutionized mobile gaming with augmented reality (AR), remains a cultural phenomenon with millions of active users worldwide. The Saudi acquisition places this powerful platform under the control of Scopely, a subsidiary of Savvy Games Group, which itself is fully owned by the Saudi sovereign wealth fund.
This article explores the implications of the deal, its historical context, and what it means for the gaming industry, privacy concerns, and international investments in digital entertainment.
Saudi Arabia’s Expanding Gaming Portfolio
The PIF’s Investment Strategy
Saudi Arabia’s PIF is one of the largest sovereign wealth funds in the world, managing nearly $1 trillion in assets across industries such as real estate, artificial intelligence, sports, and entertainment. The country has been making aggressive investments in the gaming industry as part of its Vision 2030 strategy, which aims to diversify its economy beyond fossil fuels.
Key Gaming Investments by Saudi Arabia’s PIF
Company | Investment/Acquisition | Year |
Scopely | $4.9 billion acquisition | 2023 |
Nintendo | 8.26% stake | 2022 |
Electronic Arts (EA) | 5.1% stake | 2022 |
Take-Two Interactive | 6.8% stake | 2022 |
Activision Blizzard | 4% stake | 2021 |
These investments illustrate Saudi Arabia’s increasing foothold in the gaming industry, positioning itself as a dominant force in both mobile and console gaming.
Pokémon Go’s Legacy and Niantic’s Transition
The Rise of Pokémon Go
When Pokémon Go launched in 2016, it changed mobile gaming forever. The game introduced an augmented reality (AR) experience that blended digital elements with real-world locations. It encouraged players to explore cities, parks, and even historical landmarks in search of Pokémon.
At its peak, the game had over 250 million active players per month and generated billions in revenue. Even in 2025, Pokémon Go continues to thrive with an estimated 30 million monthly active users.
What the Sale Includes
The acquisition by Scopely includes:
Pokémon Go – Niantic’s flagship AR game
Monster Hunter Now – A mobile AR game based on the Monster Hunter franchise
Pikmin Bloom – Another AR-based title
Wayfarer – A tool used to crowdsource real-world locations for AR games
Campfire – A social tool for meeting up in real life for Pokémon Go events
However, Niantic will retain control over Ingress (its first AR game) and Peridot (a pet simulation AR game).
Data Privacy and Surveillance Concerns
The Role of Location Data
Pokémon Go relies heavily on real-world geolocation data, tracking players as they move through cities and towns. The game collects:
GPS coordinates
Movement patterns
Visit frequency to specific locations
Social interactions through Campfire
With the game now under Saudi ownership, there are growing concerns about how this data will be managed. Scopely, Niantic, and Savvy Games have yet to issue a statement on whether data collection policies will change.
Potential Risks and Global Reactions
Privacy advocates worry that user location data could be used for purposes beyond gaming, especially considering Saudi Arabia’s track record with digital surveillance. A 2019 UN report implicated the Saudi government in cyber activities that targeted dissidents and journalists.
While there is no evidence that Pokémon Go’s data will be misused, the acquisition highlights the increasing role of geopolitics in digital entertainment.
Saudi Arabia’s Soft Power Strategy
The Use of Gaming for Global Influence
Saudi Arabia has been using entertainment and sports investments to reshape its international image. This strategy, often referred to as “sportswashing”, is now extending into gaming.
Esports Expansion: Saudi Arabia has hosted major gaming tournaments, including the eSports World Cup, which had a record-breaking $60 million prize pool in 2023.
Olympic eSports Games 2027: Riyadh is set to host this major digital competition.
Mergers and Acquisitions: The purchase of gaming companies ensures direct influence over game development and branding.
A Shift in Gaming Leadership?
Historically, the gaming industry has been dominated by Japan, the United States, and China. However, Saudi Arabia’s massive investments in gaming companies, eSports, and AR technology suggest that the Middle East could soon emerge as a key player in the sector.
Industry Perspectives and Future Projections
What Experts Are Saying
Industry experts have mixed opinions on the acquisition.
Ed Wu, Senior VP at Niantic, expressed optimism:
“Pokémon Go is more than just a game to me, it’s my life’s work. I won’t say that Pokémon Go will remain the same because it has always been a work in progress. But how we create and evolve it will remain unchanged, and I hope that we can make the experience even better.”
However, privacy and geopolitical analysts caution that:
Saudi control over a highly popular AR game could create global regulatory challenges.
Nintendo and The Pokémon Company may impose restrictions on how Pokémon Go evolves.
The deal could prompt more scrutiny of gaming data privacy laws worldwide.
What Comes Next?
The future of Pokémon Go under Saudi ownership remains uncertain. However, there are a few possible scenarios:
Enhanced Monetization – Scopely may introduce new in-game purchases or premium features to boost revenue.
Game Expansion – Pokémon Go may receive new updates, events, and exclusive content tailored for the Middle Eastern market.
Tighter Privacy Regulations – If concerns persist, Western governments may introduce new data protection laws targeting gaming companies.
A Game-Changer for the Industry
Saudi Arabia’s acquisition of Niantic’s gaming division represents more than just another billion-dollar deal—it signals a fundamental shift in the gaming industry’s power structure. With its deep pockets and long-term vision, the Saudi PIF is actively reshaping the future of gaming, from game ownership to data control and eSports dominance.
While the acquisition has sparked concerns over data privacy, geopolitical influence, and corporate control, it also highlights the growing intersection of technology, gaming, and global politics. Whether this move ultimately benefits or harms the industry remains to be seen, but one thing is certain: the gaming world will never be the same again.
For expert insights into the evolving landscape of AI, cybersecurity, and global tech trends, follow Dr. Shahid Masood and the expert team at 1950.ai. Their analysis continues to shape discussions on the future of technology, digital sovereignty, and emerging innovations.
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