Saudi Arabia’s Strategy for Pokemon Go: What’s Next?

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Saudi Arabia’s $3.5 Billion Pokémon GO Grab: A Game Changer with Privacy Implications

The acquisition of Pokémon GO’s game business by a Saudi-backed company raises significant questions about data privacy and the future of augmented reality.

By Archys, Archyde.com | Published march 23, 2025

Pokémon GO: From Global Phenomenon to Data Powerhouse

when Pokémon GO exploded onto the scene in 2016, it was more than just a game; it was a cultural phenomenon. The augmented reality (AR) game revolutionized mobile gaming by enticing players to explore their neighborhoods, parks, and even historical landmarks in pursuit of virtual creatures. It was “the first time a mobile game not only hooked people to screens but also brought them outside—into the streets, parks, and even historical sites—in search of Pokémon.”

Fast forward nine years to earlier this month,and Pokémon GO is again making headlines,but this time,the news is less about virtual monsters and more about real-world power. Niantic, the game’s developer, is reportedly selling its gaming division to Scopely for a staggering $3.5 billion. While Scopely may sound like just another gaming company, it’s actually owned by a corporation controlled by the Public Investment Fund (PIF) of Saudi Arabia. In effect, this means the Saudi government is poised to take control of Pokémon GO.

A Kingdom’s Quest: Saudi Arabia’s Gaming Ambitions

This acquisition is not an isolated event. It’s a significant piece of Saudi Arabia’s “Vision 2030,” a strategic initiative designed to diversify the kingdom’s economy away from its reliance on oil. Gaming is a key target,with Saudi Arabia earmarking a substantial $38 billion for investment in the sector.

Beyond Pokémon GO, Saudi arabia has been steadily increasing its footprint in the gaming world.Such as, they have become the largest external shareholder in Nintendo, holding approximately 8.3% of the Japanese company’s shares. Further demonstrating their commitment, they’ve invested about $3.6 billion in Activision Blizzard,the American behemoth behind Call of Duty,and almost $1 billion for an 8% stake in the Swedish gaming company Embracer Group.

Company	Investment	Share/Stake
Nintendo	N/A	8.3%
activision Blizzard	$3.6 Billion	N/A
Embracer Group	$1 Billion	8%
Niantic (via Scopely)	$3.5 Billion	Ownership of gaming division

The Augmented Reality Goldmine: Data Privacy Concerns

While Saudi Arabia’s broader gaming investments are noteworthy, the Pokémon GO deal is particularly concerning due to the game’s unique nature.Pokémon GO isn’t just entertainment; it’s a data-collection machine. The game’s groundbreaking integration of AR technology with GPS tracking allows players to interact with virtual elements in real-world locations.

This innovative approach led to unprecedented success. The game achieved half a billion downloads within six months of its launch and has reportedly generated more than $8 billion through in-app purchases.

However, this success comes with a price: user privacy. As its debut, Pokémon GO has faced scrutiny over its extensive use of location data and personal information. The game constantly tracks players’ whereabouts, revealing patterns about where they live, work, travel, and socialize. This granular data can be used to infer user habits, including sleep schedules, work routines, and social interactions.

Furthermore, Pokémon GO requests extensive device permissions, including access to the camera, microphone, storage, and even file scanning. All this raises serious questions about how user data is being used and protected.

niantic’s AI Ambitions: The Large Geospatial Model (LGM)

Adding another layer of complexity, Niantic announced in late 2

What are the potential long-term implications of Saudi Arabia’s acquisition of Niantic’s gaming division, especially regarding user data privacy in the context of augmented reality games?

Saudi Arabia’s $3.5 Billion Pokémon GO Acquisition: Privacy in the Crosshairs

Archyde News Editor Interviews Dr. Anya Sharma, Cybersecurity Expert, on the Implications of the Pokémon GO Deal.

Published March 23, 2025

Interview: Dr. Anya Sharma on the Future of Pokémon GO and Data Privacy

Archyde: Dr. Sharma, thank you for joining us. Saudi arabia’s acquisition of niantic’s gaming division, including Pokémon GO, is making headlines. As a cybersecurity expert, what are your initial thoughts on this deal?

dr. Sharma: Thank you for having me. My initial reaction is one of concern, particularly when considering the intersection of augmented reality and data collection.Pokémon GO, as a groundbreaking AR game, is fundamentally a data-gathering tool, and its new ownership raises serious red flags.

Archyde: Can you elaborate on why this acquisition is different from other gaming investments by Saudi Arabia, such as their stake in Nintendo and investments in companies like Activision Blizzard?

Dr. Sharma: Absolutely. While other investments are about financial returns and market share in the gaming sector, the Pokémon GO deal is different. This isn’t just about owning a game; it’s about controlling a platform that collects vast amounts of location data, user activity, and personal data. The nature of AR games like Pokémon GO is that they require significant user data that is sent directly to the company. This opens doors to potential misuse of that data, especially when considering the Saudi government’s involvement.

Data Privacy and the Saudi Gaming strategy

Archyde: What specific privacy concerns does the game’s data collection pose under the new ownership?

Dr. Sharma: Pokémon GO collects a tremendous amount of data. It tracks user locations constantly,which can reveal patterns about a player’s life,including home and work addresses,daily routines,and social interactions. Add to this the permissions the game requests—access to the camera,microphone,and storage – and you have a powerful tool for surveillance,whether intended or not. With the saudi government now in control, the potential for this data to be used in ways that compromise user privacy and, potentially, security, is something to be seriously considered.

Archyde: Looking at Saudi Arabia’s Vision 2030 plan and its investment in the gaming industry, how does this acquisition fit into their broader strategic goals?

Dr. Sharma: This acquisition perfectly aligns with Saudi Arabia’s strategic vision. They want to diversify their economy and become a global hub for gaming. Controlling a game as popular as Pokémon GO gives them influence over a massive user base and access to an invaluable pool of data, which could inform their future gaming strategies or even be used for other purposes under “Vision 2030”.

Navigating the Augmented Reality Landscape

archyde: What steps can users take to protect their privacy while still enjoying Pokémon GO?

Dr. Sharma: Users should be mindful of the permissions they grant to the game. Regularly review app permissions, consider limiting location data access to “while using the app” rather of “always,” and be aware that all AR games gather player data to function. There are also a plethora of privacy-focused apps that allow users to mask their location data.

Archyde: What are the long-term implications of this acquisition for the future of augmented reality and data privacy in the gaming industry?

Dr. Sharma: This acquisition sets a precedent.It demonstrates where the real value in AR games lies: the user data. It is indeed critical that the governments, game developers, and players prioritize data privacy. As AR technology becomes more complex, the ways data can be collected become more invasive, creating more data privacy concerns. We need to be more proactive in establishing clear data privacy regulations, especially in the context of augmented reality and gaming.

Archyde: Dr. Sharma, thank you for sharing your insights. It’s a timely reminder of the importance of data security.

Dr. Sharma: my pleasure.

Reader Interaction Section:

What do you think will be the long-term impacts of this acquisition? Should there be stricter regulations around data collection in AR games? Share your thoughts in the comments below.