Niantic Labs said it would sell its video-game division to Saudi Arabia-owned Scopely for $3.5 billion, as the U.S. augmented reality firm shifts focus to geospatial technology after failing to recreate the success of its 2016 smash hit "Pokemon Go.

Niantic Labs is selling its video-game division to Saudi Arabia-owned Scopely for $3.5 billion US, as the American augmented reality firm shifts focus to geospatial technology after failing to recreate the success of its 2016 smash hit Pokemon Go.

Scopely said it would buy Niantic’s video game business, which includes Pokémon Go, for $3.5 billion. Saudi Arabia’s sovereign wealth fund acquired Scopely in 2023.