Saudi Arabia is investing over $37.8 billion in the video games industry, with $13 billion allocated to acquire ”a leading game publisher,” according to state news.
The Savvy Games Group will perform the investments. The group is owned by sovereign wealth fund PIF and it’s looking to become a major contender in the video games industry.
The investments include at least $18.6 billion in order to take minority stakes in several ”key companies” that support Savvy’s game development agenda.
The $13 billion acquisition figure is not high enough to reach the asking price of the largest third-party companies such as EA and Take-Two. However, it could be enough to secure other studios.
Saudi Arabia’s state news reported that $481 million would be reserved for investments in ”industry disruptors to grow early-stage games,” as well as esports companies.
$4.8 billion will be invested into ”mature industry partners.”
The Crown Prince of Saudi Arabia, Mohammed bin Salman, said in a statement that ”Savvy Games Group is one part of our ambitious strategy aiming to make Saudi Arabia the ultimate global hub for the games and esports sector by 2030.
“We are harnessing the untapped potential across the esports and games sector to diversify our economy, drive innovation in the sector and further scale the entertainment and esports competition offerings across the Kingdom.”
PIF, the state sovereign wealth fund, has invested heavily in several game developers over the past few years. This includes a purchase of about a 5.01% stake in Nintendo, 5% stakes in Capcom and Nexon, and billions invested into publishers like Activision Blizzard, Electronic Arts, and more.
Saudi Arabia’s Vision 2030 is a step to reportedly modernize the kingdom. However, Saudi Arabia has been accused heavily of human rights abuses. Additionally, the crown prince has been accused by US Intelligence of ordering the murder of journalist Jamal Khashoggi.
However, the head of the gaming investment arm in Saudi Arabia called these accusations and concerns ”older impressions” of the country.
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Zainah Yousef
Zainah Yousef is the author of The Fallen Age Saga and specializes in gaming, social media advice, and reviews. She's been writing all her life and she probably won't stop anytime soon.
