Saudi Arabia's Public Investment Fund (PIF) continues its aggressive expansion into the global gaming industry with a landmark deal to acquire the gaming division of Niantic for $3.5 billion. This acquisition, which includes the hit mobile game Pokémon Go, underscores Saudi Arabia's ongoing strategy to diversify its investments and bolster its presence in the digital entertainment sector.
Niantic, renowned for developing Pokémon Go, a game that boasts 30 million monthly players and remains one of the highest-grossing mobile games globally, comes as a strategic addition to PIF's burgeoning portfolio. The acquisition reflects Saudi Arabia's broader efforts to build influence in the gaming world, having already secured stakes in major publishers such as Nintendo, Electronic Arts, and Take-Two Interactive.
The investment in Niantic is part of a larger pattern of Saudi Arabia’s increasing involvement in sports and digital entertainment. The kingdom has been making headlines for its hefty investments in the eSports industry, having hosted major events like the eSports World Cup with a prize pool exceeding $60 million. The PIF has also extended its reach into traditional sports, acquiring Newcastle United in a £300 million deal in 2021 and investing in golf, boxing, and football.
Saudi Arabia's interest in eSports is set to continue, with Riyadh slated to host the planned Olympic eSports Games in 2027. These moves are underpinned by the PIF's vast assets derived from the kingdom's substantial oil wealth, allowing it to pursue diverse investment opportunities.
However, these significant financial forays occur amidst ongoing controversies surrounding Saudi Arabia's human rights record. A 2019 United Nations report held the state responsible for the death of journalist Jamal Khashoggi, a claim the Saudi government has consistently denied. Crown Prince Mohammed bin Salman, who controls the country, has faced accusations of human rights violations.
Despite these controversies, Saudi Arabia's investments in gaming are reshaping its global image. The acquisition of Niantic and its popular titles, such as Pokémon Go, reflects a calculated effort to diversify its economy and engage with new audiences worldwide.
"Pokémon Go is more than just a game to me, it's my life's work," said Ed Wu, highlighting the cultural significance and personal value attached to such gaming ventures.