The Saudi Arabian government is betting $38 billion on the country's potential to become the next hub for the video-game industry.
As part of its strategy to diversify its economy away from oil, Saudi Arabia, through its Public Investment Fund, wants to become a big player in the $184 billion global gaming market. After focusing initially on the esports industry, which has been struggling, the fund's subsidiary, Savvy Gaming Group, is now looking to develop, publish and acquire top-tier games and support a gaming industry in Riyadh.
A faster path to Savvy's "ultimate objective" to help the country become a global entertainment hub by 2030 is to acquire studios or publishers, including internationally, Ward said. Electronic Arts would be "too big" for them — Savvy has about $13 billion to invest in acquiring a game publisher — although Ward would consider taking another public game publisher private.
Kantan Games' Toto points out that China's controversial government hasn't hurt gaming giant Tencent's international expansion strategy. The Saudi Fund has already invested in beloved gaming companies like Nintendo, he says. "Will people really buy less Switch games?"
Saudi Arabia Is Investing $38 Billion to Become a Video-Game Hub - BloombergLast edited by Ryuu96 - on 03 April 2023