The developer of Pokémon Go, Niantic, could sell its gaming division for just $3.5 billion.

Niantic, the company known for creating the popular augmented reality game Pokémon Go, is evaluating the possibility of selling its video game division. According to sources close to the situation, the transaction could be valued at $3.5 billion. In 2021, the company secured additional funding at a valuation of $9 billion.

Although Pokémon Go is still played by many people, its popularity has significantly declined since its launch and the surge it experienced during the COVID-19 pandemic. Currently, it is estimated to have around 80 million monthly users, a notable drop compared to the 232 million active players the app reached at its peak. During that time, the game generated almost a billion dollars annually, but today its revenue hovers around half that figure.

While Pokémon Go was a huge success, Niantic has struggled to replicate that success with its later games, which are largely variations of the same augmented reality experience. Harry Potter: Wizards Unite lasted about three years, while NBA All World only managed to survive five months. Other titles like Pikmin Bloom and Monster Hunter Now remain available, but they have not reached the profitability of the original game. In 2021, the company also raised funds with the intention of creating a "real metaverse," a project that has yet to come to fruition.

Additionally, Niantic has not escaped the wave of layoffs that has impacted the video game industry. In 2022, the company laid off eight percent of its staff and canceled four projects. In the following year, 230 more employees were let go, and a Marvel-related project was aborted.

Reports indicate that Niantic is considering selling its gaming division to Scopely, a company controlled by Savvy Games Group. The latter is part of the Public Investment Fund of Saudi Arabia, which holds shares in major companies like EA, Activision, and Nintendo.