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Forums - Gaming Discussion - Saudi Arabia Is Investing $38 Billion to Become a Video-Game Hub

mZuzek said:
Barozi said:

Very naive thinking. How is that supposed to work? Clone developers? There's a limited amount of workforce and all companies in that industry are competing for them. You can't hire what doesn't exist. Besides, you just compared a private company to a government.

There's no difference between opening new studios and then poach experienced developers from other studios to fill up the vacant positions or just straight up buying entire studios. You can't just fill up all the spots with newbies.

It's called investing in education, both basic and specialized, and investing in the industry in a way that makes it approachable for the people of Saudi Arabia to play games, therefore creating interest from within and creating a path for these people to actually work in the industry. Of course, this is a long-term approach with the intent of making the lives of the people in the country better and allowing them to chase dreams they currently can't. None of this is what the Saudi government are looking for, obviously - their reasoning for doing any of this is what it's always been, money-washing. Best to get it done quick.

huh? My post was about Microsoft or any other company.

I know how states should handle it and I don't disagree with you at all.



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Barozi said:
mZuzek said:

It's called investing in education, both basic and specialized, and investing in the industry in a way that makes it approachable for the people of Saudi Arabia to play games, therefore creating interest from within and creating a path for these people to actually work in the industry. Of course, this is a long-term approach with the intent of making the lives of the people in the country better and allowing them to chase dreams they currently can't. None of this is what the Saudi government are looking for, obviously - their reasoning for doing any of this is what it's always been, money-washing. Best to get it done quick.

huh? My post was about Microsoft or any other company.

I know how states should handle it and I don't disagree with you at all.

Fair enough, I thought you meant like in general. In the case of Microsoft it is more like what you said, even if they created their own studios they'd essentially have to poach developers from other teams, since the industry as a whole is pretty established over there.



They should buy the rest of Nintendo and Capcom stock that's available it's a guaranteed money maker. I doubt 13 billion is enough to buy Capcom with its record high stocks at the moment.



Please excuse my (probally) poor grammar

Maybe they'll start out small with the likes of Certain Affinity and Asobo type stuff.



Quick, no one tell captainexplosion about this.





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Barozi said:
Shatts said:

Honestly tho, I wondered the same thing for Microsoft. Why don't they just expand and improve on themselves rather than targeting others. But I guess that's what happens when you have immense wealth, just so much easier and faster.

Very naive thinking. How is that supposed to work? Clone developers? There's a limited amount of workforce and all companies in that industry are competing for them. You can't hire what doesn't exist. Besides, you just compared a company to a government.

There's no difference between opening new studios and then poach experienced developers from other studios to fill up the vacant positions or just straight up buying entire studios. You can't just fill up all the spots with newbies.

There is no limited amount of workforce in gaming business. There is no shortages of developers either. There is an excess of gaming dev students who just don't get jobs and have to pursue other engineering careers.

Microsoft do not hire them because it's take some time to train. It's not like Microsoft lacks senior designers, they have enough to train new generations of designers and developers with the available entry level workforce. They simply don't bother because it's faster is most cost effective to just buy studios. 

Edit: And by cost effective I do not mean buying studios is cheaper. With the money MS is paying for Blizzard  they could have hired every single employee on Blizzard and keep them working for 30 years with wages of over 300k USD a year. Pretty sure they could have just hired some dozens of senior devs for less than 1% of what they are offering Blizzard 

By cost effective I mean their buying spree will have an actual pay off, because they are acquiring IPs and games that are very well stabilished. The workforce they will get is just the cherry on top, but ultimately hiring issues are by no means a reason behind acquisitions, as they could have solve ANY kind of staff deficit with much lesser investments

Last edited by IcaroRibeiro - on 03 April 2023

I wonder how much they are going to control everything being 'Halal' in the games they are funding. The Chinese have their own no-no cultural things and those are pretty much observed I think.



IcaroRibeiro said:

There is no limited amount of workforce in gaming business. There is no shortages of developers either. There is an excess of gaming dev students who just don't get jobs and have to pursue other engineering careers.

Microsoft do not hire them because it's take some time to train. It's not like Microsoft lacks senior designers, they have enough to train new generations of designers and developers with the available entry level workforce. They simply don't bother because it's faster is most cost effective to just buy studios. 

Edit: And by cost effective I do not mean buying studios is cheaper. With the money MS is paying for Blizzard  they could have hired every single employee on Blizzard and keep them working for 30 years with wages of over 300k USD a year. Pretty sure they could have just hired some dozens of senior devs for less than 1% of what they are offering Blizzard 

By cost effective I mean their buying spree will have an actual pay off, because they are acquiring IPs and games that are very well stabilished. The workforce they will get is just the cherry on top, but ultimately hiring issues are by no means a reason behind acquisitions, as they could have solve ANY kind of staff deficit with much lesser investments

There is no limited amount of workforce in gaming business. There is no shortages of developers either. There is an excess of gaming dev students who just don't get jobs and have to pursue other engineering careers.

Their is actually a shortages of developers, in as been this way for over 20 years, that's why it's incredibly easy for an IT students to find a job right out of school. And the main reasons that students under a game dev program choose other career is not for the lack of options in gaming, it's because software development in generally have higher wage and way better working condition. (who does not like a better salary, better working hours and paid overtime with bonus)

Microsoft do not hire them because it's take some time to train. It's not like Microsoft lacks senior designers, they have enough to train new generations of designers and developers with the available entry level workforce. They simply don't bother because it's faster is most cost effective to just buy studios. 

Not exactly, MS does not shy away from training new devs, they just are already maximizing this avenue since 2018 (with the exception of 2022 were they stopped all hiring company wide). In that timeframe many of their studios doubled and some tripled in size. Buying studios is not cost effective, it's pretty much the opposite but it's the only realist option to gain higher velocity toward achieving your goal with the benefits of limiting risk associated with your investment. Many view this $70B amount and think they should have just spend this amount on expanding organically, it's simply not possible especially since it's already covered by other investment. This $70B investment main goal is to solve their shortcomings short terms spending this amount over 15-20 years won't do it.

And by cost effective I do not mean buying studios is cheaper. With the money MS is paying for Blizzard  they could have hired every single employee on Blizzard and keep them working for 30 years with wages of over 300k USD a year. Pretty sure they could have just hired some dozens of senior devs for less than 1% of what they are offering Blizzard 

More like 200K over 30 years but anyway, that's the problem they don't sign a 1 time $70B check to be the equivalent of $2.33B/years over 30 years, they invested that amount specifically to reap the benefits short term and accelerate GamePass growth. it's not that they are not interested in organic growth, they are already doing so, it's just not fast enough to get GamePass and Xbox where they want them to be in the timeframe they want them to be.



BasilZero said:

Quick, no one tell captainexplosion about this.

If you say his name 3 times you know he will show up.



Machiavellian said:
BasilZero said:

Quick, no one tell captainexplosion about this.

If you say his name 3 times you know he will show up.