Saudi Arabia has invested in multiple sectors in recent years through its Public Investment Fund (PIF). The goal of its authorities is to diversify its business portfolio and reduce its dependence on oil. This strategy has led the country into the gaming world with major stakes in Take-Two Interactive, Nintendo, and the recent multibillion-dollar acquisition of Electronic Arts. Although many see Saudi Arabia as a tough competitor, it appears there won’t be more gaming-related operations for now.
A report reveals that Saudi Arabia will pause investments in the video game industry
According to information from The New York Times (via VGC), Saudi Arabia will stop investing in video game companies—at least for an indefinite period.
The report states that sources familiar with the PIF’s operations revealed that Mohammed bin Salman’s administration will review its business ventures since some of them have not delivered the expected results.
In its push for financial diversification, the Saudis established ventures such as a skiing region operated by robot workers. They also invested in a coffee chain that only has one location, a cruise line with only one ship, and an electric vehicle company that still hasn’t released a model to the market.
As these businesses seem to be failing and represent significant financial losses, PIF administrators will halt further investments for now. Instead, they will analyze all sectors, and sources suggest that this new phase could shift attention back to traditional areas such as the stock market.
If confirmed, Saudi Arabia would stay away from new acquisitions and maintain its current position as a major competitor in the video game industry.
What are the PIF’s gaming investments?
From 2021 to today, the PIF has become one of the most influential forces in the global video game industry. Through its subsidiary Savvy Games Group, the fund executed an aggressive expansion strategy with multibillion-dollar acquisitions and major equity purchases in leading publishers.
Among the most notable deals are the $4.9 billion acquisition of Scopely, gaining nearly full control of SNK, and major investments in Japanese companies like Nintendo, Capcom, and Nexon.
It also invested in Western giants such as Activision Blizzard and Take-Two, and recently paid $55 billion to take full control of EA.
In gaming, this is part of a strategic plan aimed at turning Saudi Arabia into a global capital of the video game industry.
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