Why is Saudi Arabia buying up the video game industry?

Summary

Saudi Arabia is making bold moves to dominate the gaming industry, with its $55 billion acquisition of Electronic Arts and heavy investments in gaming giants like Nintendo and Take-Two. Through its gaming arm, Savvy Games, the kingdom is positioning itself as a global superpower in gaming, driven by both economic diversification away from oil and the personal passion of Crown Prince Mohammed bin Salman. Saudi Arabia aims to create a gaming empire, develop local talent, and project its culture through gaming, including major esports investments and creating games rooted in Middle Eastern myths and legends.

Takeaways

• 😀 Electronic Arts (EA) was originally founded in 1983 as a small video game company and is now one of the largest gaming brands in America.
• 😀 Saudi Arabia's Public Investment Fund is leading the purchase of EA for $55 billion, part of a larger push into the gaming industry by the kingdom.
• 😀 Saudi Arabia has made significant investments in gaming, including acquiring major stakes in companies like Nintendo, Take-Two, Capcom, and Nexon.
• 😀 The kingdom is investing heavily in esports, owning around 40% of the global esports market through acquisitions like ESL and FaceIt.
• 😀 Crown Prince Mohammed bin Salman is personally passionate about gaming, even citing his love for the FIFA franchise as an influence on his investments.
• 😀 Saudi Arabia aims to diversify its economy beyond oil by investing in gaming, with a goal to create 39,000 new jobs in the sector by 2030.
• 😀 In addition to economic diversification, Saudi Arabia hopes to build a 'Disney of video games' by creating live gaming experiences through esports.
• 😀 The kingdom is also using its gaming investments to project a new image of Saudi Arabia and promote its own culture and stories through gaming.
• 😀 There are increasing opportunities to develop games that reflect the myths and legends of the Middle East, following successful examples like China's influence on game narratives.
• 😀 The rise of Saudi Arabia's influence in the gaming industry could impact the content of games, potentially leading to more culturally specific themes or changes in the portrayal of certain subjects.
• 😀 Games like Assassin's Creed are already incorporating Saudi Arabian settings, and collaborations between Saudi-backed gaming entities and international companies are becoming more common.

Q & A

What is the significance of Electronic Arts (EA) in the video gaming industry?

EA, originally founded by a small team in 1983, is now one of America's largest gaming companies. It's known for creating groundbreaking games such as 'Archon: The Light in the Dark' and has evolved into a major player in the global gaming industry.

How is Saudi Arabia involved in the global gaming industry?

Saudi Arabia is investing heavily in the gaming industry, with the Saudi Public Investment Fund leading a $55 billion acquisition of EA. It has also acquired large stakes in other gaming companies and built a subsidiary, Savvy Games, with a $38 billion budget to expand its gaming influence.

What companies and IPs does Saudi Arabia have stakes in within the gaming industry?

Saudi Arabia owns or has stakes in several major gaming companies such as Scopely (makers of 'Monopoly Go'), Niantic (developers of Pokémon mobile games), Embracer (owners of 'Tomb Raider'), and shares in companies like Nintendo, Take-Two (makers of 'Grand Theft Auto'), and Capcom.

What role does Crown Prince Muhammad bin Salman (MBS) play in Saudi Arabia's gaming strategy?

MBS, a known fan of gaming, has driven the country's interest in building a 'Disney of video games.' His vision includes creating immersive live gaming experiences and expanding esports to improve Saudi Arabia's global soft power and diversify its economy.

What is Saudi Arabia's goal in terms of the domestic gaming industry by 2030?

Saudi Arabia aims to create 39,000 jobs in the gaming industry by 2030, positioning gaming as a key part of the nation's economic diversification strategy away from oil dependence.

What is the connection between Saudi Arabia's interest in gaming and its broader strategy of 'sports washing'?

Saudi Arabia has been accused of 'sports washing'—using sports to improve its international image. A similar concept, 'gamewashing,' could emerge as the kingdom invests in the gaming industry to project a more positive image and influence global gaming narratives.

How does Saudi Arabia's gaming strategy relate to cultural influence?

Saudi Arabia sees gaming as a tool to project Middle Eastern culture, aiming to create games based on regional myths and stories. By doing so, it hopes to increase the global appeal of Arab culture, similar to how China has used its own culture in successful video games.

How might the games themselves change as a result of Saudi Arabia's increasing influence?

Games could potentially adopt a 'Saudi accent,' reflecting regional culture and possibly avoiding themes that conflict with Saudi values. For instance, games like 'Assassin’s Creed' are now set in Saudi Arabia, and there are examples of games featuring prominent figures like Cristiano Ronaldo, who is linked to Saudi-backed teams.

What is the potential impact of Saudi Arabia's growing gaming influence on Western games?

Saudi influence may cause Western games to shift towards more regionally tailored content, such as avoiding controversial topics like LGBTQ+ themes in certain markets. However, it’s unlikely to completely alter the essence of major franchises in the short term.

How has Saudi Arabia already influenced the gaming industry through acquisitions and investments?

Saudi Arabia has heavily invested in esports, acquiring companies like ESL and Face It, which run major competitive gaming events. Additionally, it has a large share in global gaming companies, positioning the kingdom as a dominant force in the future of gaming.