Niantic Labs said it would sell its video-game division to Saudi Arabia-owned Scopely for $3.5 billion, as the U.S. augmented reality firm shifts focus to geospatial technology after failing to recreate the success of its 2016 smash hit "Pokemon Go.

Saudi Arabian-owned mobile developer Scopely has announced that it'll be acquiring Niantic's video game division, paying $3.5 billion for the developer behind Pokemon Go. Also included in the proposed deal-- which was revealed several weeks back --are several other Niantic titles, like Monster Hunter Now and Pikmin Bloom.

Scopely, backed by Saudi Arabia’s Savvy Games, has acquired Niamtic Labs in a deal worth $3.5bn. The deal for the leading mobile games company in the US is the latest blockbuster gaming investment by the Kingdom.