Scopely’s $3.5 billion Pokemon Go acquisition signals in-game ad opportunities as Niantic focuses on AI

The news: Scopely, the leading casual video game publisher of 2024, is acquiring Niantic’s games division in a $3.5 billion deal, adding Pokémon Go, Pikmin Bloom, and Monster Hunter Now to its growing game portfolio. The deal is subject to regulatory approval, with Niantic’s game teams joining Scopely.

The acquisition elevates Scopely’s position in the live-service mobile gaming space, enhancing its offerings, which include Monopoly Go! and Stumble Guys. It also frees up Niantic to pursue an expansion into AI and location based apps.

What this means for Scopely: The game publisher’s focus on live-service games—a model with recurring monetized content to drive user engagement, similar to Fortnite—means more in-game advertising, branded integrations, and sponsorships.

• Scopely gained a recognized franchise with Pokémon Go, an AR game pioneer with over 100 million players last year.
• If approved, the acquisition signals Scopely’s commitment to expanding live-service games and capitalizing on enduring franchises.
• Scopely has the option to develop in-game advertising, a growing trend in freemium games with 43% of gamers encountering reward-based ads in 2025, per Attest.

What this means for Niantic: Niantic will spin off its tech platform into a new entity, Niantic Spatial, which is built on geospatial AI and AR mapping technology.

• Niantic will retain ownership of Ingress Prime and Peridot, positioning itself as a leader in AR-driven real-world interactions.
• Niantic Spatial’s geospatial AI can enable hyper-targeted ads based on real-world movement patterns, offering brands precise audience segmentation.
• Niantic’s tech reduces barriers to location-based, AR, and contextual advertising. CMOs should explore opportunities that blend digital and physical worlds for deeper engagement.

Our take: While Pokémon Go remains successful, Niantic’s pivot suggests that sustained engagement in AR gaming is challenging without constant innovation and a steady revenue stream.

The deal highlights the growing value of long-term player communities and the challenge of maintaining AR-driven gaming. CMOs should track how brands engage players through evolving mobile ecosystems while exploring location-based opportunities.