The kingdom wants to expand its presence in the videogame industry in a very big way.
(Image credit: Eric Lafforgue/Art in All of Us (Getty Images))
The Kingdom of Saudi Arabia has been making some big moves into the gaming space in recent years. Through various public agencies, it’s made big investments in Capcom, Nexon, Nintendo (opens in new tab), ESL Gaming (opens in new tab), SNK (opens in new tab), and Embracer Group (opens in new tab). And it’s not done yet: Crown Prince Mohammed bin Salman, who multiple intelligence agencies believe is responsible for the brutal murder and dismemberment of Saudi dissident journalist Jamal Khashoggi (opens in new tab) in 2018, has announced plans to invest nearly $38 billion across four separate programs, more than $13 billion of which will go toward acquiring “a leading game publisher.”
The investments will be made by Savvy Games Group, a fully-owned subsidiary of Saudi Arabia’s Public Investment Fund, which is chaired by bin Salman, widely considered the architect of the ongoing civil war in Yemen (opens in new tab) that has resulted in an estimated 377,000 deaths. Here’s how the investment will be divided:
- $18.7 billion for “a series of minority stake investments in key companies that support Savvy’s game development agenda.”
- $13.3 billion for “the acquisition and development of a leading game publisher to become a strategic development partner.”
- $5.3 billion to invest into “mature industry partners who add value and expertise to Savvy’s portfolio.”
- $533 million for “diversified investments in industry disruptors to grow early-stage games and esports companies.”
“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,” bin Salman said in a Saudi Press Agency release (opens in new tab) (via Axios (opens in new tab)). “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.”
Savvy Games Group expects its strategy to result in the creation of 250 game companies in Saudi Arabia, generating 39,000 jobs and boosting the industry’s contribution to Saudi Arabia’s GDP to $13.3 billion—the cost of the publisher acquisition—by 2030.
There’s no indication as to who Saudi Arabia might be eyeballing, but it’ll be a big deal if and when it happens. By way of comparison, Sony picked up Bungie for $3.6 billion (opens in new tab), Microsoft acquired Bethesda Softworks for $7.5 billion (opens in new tab), and Take-Two snagged Zynga for $12.7 billion (opens in new tab). The only thing keeping a $13 billion buyout from the top of the heap is Microsoft’s acquisition of Activision-Blizzard, which if and when completed will cost $68.7 billion (opens in new tab). That’ll likely hold the top title for a while. Still, if Savvy blows the whole budget on one company, it’ll be a top-five big one for sure.
The question now is, who might Savvy Games Group have in mind? A rumor surfaced in August that Amazon was looking to acquire Electronic Arts; that was ultimately shot down (opens in new tab), but having EA in its stable would make Savvy an instant big player in the international games industry. Ubisoft is another perennial favorite for takeover rumors, but it’s equally notorious for resisting such attempts, and recently took a large chunk of cash from Tencent that actually strengthens its independent footing (opens in new tab). Ubisoft also isn’t worth anywhere near $13 billion: At the time of the Tencent investment, it had an estimated public valuation of $5.3 billion.
Andy has been gaming on PCs from the very beginning, starting as a youngster with text adventures and primitive action games on a cassette-based TRS80. From there he graduated to the glory days of Sierra Online adventures and Microprose sims, ran a local BBS, learned how to build PCs, and developed a longstanding love of RPGs, immersive sims, and shooters. He began writing videogame news in 2007 for The Escapist and somehow managed to avoid getting fired until 2014, when he joined the storied ranks of PC Gamer. He covers all aspects of the industry, from new game announcements and patch notes to legal disputes, Twitch beefs, esports, and Henry Cavill. Lots of Henry Cavill.