Saudi Arabia is reportedly planning to invest $38 billion into its gaming industry, with a focus on developing new IP and asserting itself as a publisher and developer. The Public Investment Fund, the state’s sovereign wealth fund, has recently increased its stake in Nintendo to 8.26 percent and also holds millions of shares in EA and Take-Two. Savvy Gaming Group, a subsidiary of the Public Investment Fund, hopes to work with these companies to collaborate on publishing, running their esports business, or developing new IP together.
Savvy Gaming Group, which started a small studio a year ago with 45 employees, plans to develop a mobile game followed by a console game. Bloomberg reported that the government-owned company is also planning to acquire a publisher with a budget of $13 billion for the acquisition. Last year, the state announced that it planned to invest £32 billion into the games industry, with £12 billion of that allotted to its budget for acquiring a publisher.
Savvy’s CEO, Brian Ward, has responded to allegations of sportswashing, citing the company’s executive team members of the LGBTQ community and women. He stated that the company would “absolutely hire an LGBTQ or Jewish person to lead a game studio in Saudi Arabia.”
The increasing investments made by Saudi Arabia into the gaming industry continue to be controversial due to its poor human rights record. The country criminalizes homosexuality, has fewer rights for women, and uses the death penalty. Additionally, the Crown Prince and de facto ruler Mohammed bin Salman has been blamed by the CIA for the assassination of Washington Post journalist Jamal Khashoggi in 2018.
New: Inside Saudi company Savvy's $38b plan to make Saudi Arabia the next games industry hub. Takeaways:
– Savvy wants to work with companies PIF has taken large stakes in (i.e. Nintendo) to build out SA operations
– No more big-ticket esports acquisitions https://t.co/klgwMMIfqs— Cecilia D'Anastasio (@cecianasta) April 3, 2023
While the investment into the gaming industry is significant, it has been met with criticism from those concerned about the country’s human rights record. The country’s treatment of LGBTQ individuals and women, in particular, has been called into question. Additionally, the assassination of Khashoggi has led many to question the morality of investing in a country led by someone accused of such a heinous act.
Savvy Gaming Group’s CEO, Brian Ward, has responded to allegations of sportswashing, stating that the company has executive team members from the LGBTQ community and women, and that it would hire an LGBTQ or Jewish person to lead a game studio in Saudi Arabia. While this is a positive step, it remains to be seen how the company will address the broader human rights concerns associated with the country’s government.
Despite the controversy, the investment in the gaming industry is significant and could have a major impact on the industry as a whole. The focus on developing new IP and asserting itself as a publisher and developer could lead to new and exciting games being created, while collaborations with established companies like Nintendo, EA, and Take-Two could lead to innovative new esports ventures.
Overall, the Saudi Arabian government’s investment in the gaming industry is a major development for the industry as a whole. While concerns about the country’s human rights record remain, the potential benefits of the investment cannot be ignored. With Savvy Gaming Group focusing on developing new IP and working with established companies, we could see some exciting new developments in the gaming industry in the coming years.
