Niantic plans $3.5B ‘Pokemon Go’ sale as HP acquires AI Pin

Whatever the “name of the game,” it’s going to have AR and VR written all throughout it. Here are some big happenings in that space…

The virtual and augmented reality gaming landscape continues to evolve, with several major acquisitions and product launches reshaping the industry in early 2025. Notable developments include Niantic‘s potential sale of Pokémon Go and HP‘s acquisition of Humane‘s AI technology assets.

Major industry shifts: Niantic is in negotiations to sell Pokémon Go to Scopely Inc. for approximately $3.5 billion, marking a significant change in the AR gaming space.

• The deal reflects challenges in AR gaming profitability, as Niantic must share substantial revenue with the Pokémon license holders
• Despite generating billions in annual revenue, Pokémon Go’s operational costs have impacted Niantic’s bottom line
• The company plans to focus on developing spatial intelligence through machine learning models, utilizing data from its gaming applications

Strategic acquisitions: Several significant mergers and acquisitions are reshaping the technology landscape.

• Brahma has acquired Metaphysic in a merger valuing Brahma at $1.43 billion, combining their AI content creation capabilities
• HP Inc. has purchased Humane for $116 million, though notably excluding the AI Pin device which will cease functioning by February 28, 2025
• Alpha3D has acquired MoonlanderAI to create the first platform-agnostic XR user-generated content community

Technical innovations: Microsoft has made a breakthrough in quantum computing with its Majorana 1 chip.

• The chip features eight topological qubits constructed from indium arsenide and aluminum
• Unlike traditional computing bits, qubits can exist in multiple states simultaneously, enabling more complex computational capabilities
• Microsoft is prioritizing long-term research over immediate commercialization, with the goal of developing a million-qubit system

Gaming developments: New VR titles and updates are expanding the market’s offerings.

• Another Axiom is launching Orion Drift, the sequel to Gorilla Tag, as a free-to-play title supporting up to 200 players
• Thief Simulator VR: Greenview Street has achieved impressive sales of 310,000 units on Meta Quest
• Take Two Interactive appears to be developing custom creator experiences for Grand Theft Auto, following Epic Games’ successful social gaming model

Market implications: The AR and VR industry is experiencing significant consolidation while simultaneously seeing new innovations and product launches.

• Large technology companies are acquiring smaller innovators to integrate their technologies into existing product lines
• Traditional gaming companies are expanding into social experiences and user-generated content
• The industry continues to face challenges in hardware adoption and profitability, leading to strategic pivots and consolidation

Looking ahead: While some early AR/VR ventures face challenges, the industry’s continued consolidation and strategic acquisitions suggest a maturation of the market rather than its decline, with established tech companies positioning themselves for long-term growth in spatial computing and AI-enhanced experiences.