Pokemon Go creator Niantic is reportedly worth more than Square Enix, Capcom, and Sega, with the mobile game developer said to be raising $200 million on a $3.9 billion valuation. This puts it ahead of other, larger developers with a vaster library of games, showcasing the incredible level of success the AR title has enjoyed.
The valuation was revealed by Wall Street Journal, which stated that the funding round would be led by venture-capital firm IVP. In 2017, Niantic raised $200 million on a valuation of around $2.7 million.
Though Niantic is a private company with its value therefore at risk of being over-estimated by investors, these numbers are still impressive considering the developer’s comparatively limited output. With only Pokemon Go and Ingress Prime bolstering the company’s finances, there is clearly a great deal of faith in the future success of these products.
Pokemon Go company Niantic is said to be raising $200 million on a $3.9 billion valuation now.
That's more than the current market capitalization of Square Enix, Capcom or Sega Sammy. https://t.co/x6UNbgm6ur
— Dr. Serkan Toto 🔜TokyoGameShow (@serkantoto) December 14, 2018
A big indication of whether Niantic can capture lightning in a bottle twice will be with Harry Potter: Wizards Unite. Another augmented reality game, the mobile game will let players “explore real-world neighborhoods and cities to discover mysterious artifacts, learn to cast spells, and encounter legendary beasts and iconic characters along the way.”
While the world of Harry Potter perhaps doesn’t translate to an AR game as easily as Pokemon, there’s certainly a huge market of Potter fans who will be more than willing to give it a shot. It seems that investors believe Wizards Unite will be a hit, hence Niantic’s increased valuation. It remains to be seen if this will be the case, though Pokemon Go‘s continued profitability will certainly keep the company going in the meantime.
Niantic’s breakthrough success echoes that of Epic Games, which has enjoyed a meteoric year thanks to Fortnite. At the end of October, Epic was valued at $15 billion, with it having reportedly banked a $3 billion profit for the year. While Niantic hasn’t quite reached those levels, it has still been an incredibly impressive display for the mobile game developer.
