Scopely Control 76% of the Location-Based Market
Acquiring Niantic = Scopely Controlling 76% of the Location-Based Market
Scopely is reportedly in talks to acquire Niantic for $3.5B. If the deal goes through, it will be one of the biggest M&As in gaming history!
For us, this is a perfect moment to take a closer look at the genre and Niantic’s role in it:
🔷 Niantic owns 4 out of the top 10 location-based games, generating 76% of total market revenue. This is one of the most monopolized segments in gaming, with incredibly high entry barriers.
🔷 Having a major IP is almost essential in this market, yet even that doesn’t guarantee success. Despite its dominance, Niantic has seen multiple failures with titles based on Harry Potter, NBA, Transformers, Catan, and Marvel.
🔷 While Pikmin and Monster Hunter are performing better, they’re still far behind Pokémon GO, which alone accounts for 62% of the market.
🔷 Scopely is owned by UAE-based Savvy Games Group, one of the most active acquirers and investors in gaming and esports. This deal could be a strategic move to optimize operations by merging internal resources and scaling efficiencies across its companies.
Want to see how location-based gaming thrives on IP power? Check out our public dashboard: https://lnkd.in/gdiW4u-8
