The Saudi state investment fund has invested billions of dollars from major publishers in the video game industry
Through Electronic Gaming Development Company (EGDC), a subsidiary of Saudi Arabia’s Public Investment Fund (PIF), Crown Prince Mohammed bin Salman acquired shares in American publishers Electronic Arts ( 2.6%), Activision Blizzard (3.5%) and Take-Two Interactive (3.5%) against $ 3.3 billion.
This heavy financial transaction comes after the acquisition of a 33.3% stake in SNK’s capital last November. The latter should also increase to more than 50% within the next few years so that “MBS” can become the majority shareholder of the publisher of The King of Fighters.
Soft power with video games for Saudi Arabia?
At 35, Mohammed bin Salman is one of the first generation of Saudi gamers and a die-hard fan of the Call of Duty license. Its gradual arrival in the middle with billions is not trivial and falls mainly within the framework of the Saudi Vision 2030 development plan.
The aim of this is to bring the country out of its historic oil income by diversifying its economy with tourism, renewable energies as well as technology industries, while resorting to various privatizations.
It is not that Electronic Gaming Development Company is attacking other well-known publishers before a group like Tencent finalizes certain agreements.
Rachel Maga is a technology journalist currently working at Globe Live Media agency. She has been in the Technology Journalism field for over 5 years now. Her life’s biggest milestone is the inside tour of Tesla Industries, which was gifted to her by the legend Elon Musk himself.