����ֱ��

The video game industry today is one of the world’s largest entertainment sectors, with a global market value approaching $190 billion and an audience of 3.6 billion players — roughly 60 percent of all internet users. 

����ֱ�� is emerging as a powerhouse in this domain. Over two-thirds of the Kingdom’s population — about 25.8 million people — are gamers, and the domestic gaming market generates an estimated $1.2 billion annually. Notably, this figure likely underestimates Saudi gamers’ true spending power, as many Saudi players register on international online stores — such as PlayStation or Xbox stores — for content access and convenience, meaning some of their expenditure isn’t counted in local market statistics. 

More importantly, ����ֱ��’s gaming market is expanding at nearly 8 percent annually, outpacing the global average by roughly double. This robust growth is driven by strong local demand, a young tech-savvy population, and supportive government initiatives to develop the gaming ecosystem. In contrast, worldwide game revenue growth is a steadier ~3–4 percent per year The Kingdom’s combination of a passionate player base and pro-growth strategy uniquely positions it as both a lucrative market and a potential industry leader.

A record-shattering deal 

On Sept. 29, Electronic Arts agreed to be acquired by a consortium led by ����ֱ��’s Public Investment Fund, with Silver Lake and Affinity Partners, in a $55 billion deal. 

It will take EA private in the largest leveraged buyout ever, and the second-biggest gaming acquisition after Microsoft’s $68.7 billion purchase of Activision Blizzard in 2022. The price, greater than some nations’ gross domestic product, reflects major confidence in gaming’s future.

The consortium will pay $210 per share, a 25 percent premium, using about $36 billion in equity — including PIF’s existing stake — and $19 billion- $20 billion in JPMorgan debt. 

EA shareholders will be fully bought out, but headquarters remain in California under CEO Andrew Wilson, signaling continuity and stability. Analysts highlight that this rare investor-led buyout underscores gaming’s maturity as a sector. Unlike past LBOs in stagnant industries, EA offers strong franchises and steady revenues, especially from sports titles, making the acquisition a bet on long-term growth.

EA goes private

For Electronic Arts, transitioning from a public company to a private one opens up new strategic possibilities. As a public corporation, EA has long been accountable to millions of shareholders and subject to the relentless quarterly earnings cycle — the pressure to meet Wall Street expectations every three months. 

By going private under PIF and partners, EA gains something priceless: freedom to focus on long-term initiatives away from the short-term scrutiny of stock analysts. Financial analysts noted that the consortium’s backing and resources will enable EA to pursue growth opportunities that might have been deemed “too risky or expensive” under the old public model. In practical terms, this could mean greater investment in innovative games, new technologies, and player community features that might not deliver immediate profits but build the foundation for future leadership.

At the same time, the new owners will likely encourage EA to double-down on its most beloved and profitable franchises. EA’s portfolio is anchored by blockbuster titles — especially its EA Sports lineup, including the FIFA-football successor EA Sports FC, Madden NFL, etc. — and big-budget action series like Battlefield. 

These franchises have massive global followings and consistent recurring revenue thanks to loyal fan bases and in-game monetization. Analysts observe that, amid an industry downturn in 2023–2024, it was precisely EA’s dependable sports games that kept its revenues robust. We may therefore see even greater focus on these cornerstone IPs to maximize their potential. For example, EA could expand the EA Sports brand into new sports or formats or invest more in e-sports leagues. High-return franchises will continue to be nurtured aggressively under the new stewardship.

Conversely — and here lies the true promise of going private — EA can also afford to be more patient and experimental with projects outside the annual blockbuster cycle. No longer will every studio decision be scrutinized through the lens of the next quarter’s profit. 

This brings to mind the example of Valve Corp., another gaming company that has thrived as a private entity. When Valve launched its Steam digital distribution platform in 2003, it was met with widespread skepticism from both gamers and industry peers. At the time, the idea of forcing players to use an online client to buy and play PC games was controversial. Had Valve been a publicly traded company back then, it might have been difficult to justify Steam to short-term-focused investors —an unproven project that took years to become profitable. But Valve’s private ownership structure allowed founder Gabe Newell to stick with his long-term vision. 

Steam gradually evolved, won over users with its convenience and sales, and today it dominates PC gaming with an estimated 50–70 percent market share in digital game distribution. In hindsight, Steam’s success looks obvious, but it required foresight and the willingness to forego immediate returns in exchange for a bigger future payoff.

EA now has a similar opportunity. Freed from stock market pressures, EA can take bold bets on developing new IP, improving user experience, and building platforms for the next generation of gaming. 

It can invest in cutting-edge technology — such as AI-driven game design or VR/AR experiences — without fearing a dip in quarterly earnings. It can overhaul player feedback systems and community features to strengthen long-term engagement. It can even revisit dormant franchises or launch ambitious new ones that might not have guaranteed blockbuster status — the kinds of projects that, as a public company, could be hard to greenlight. 

As a private firm, EA’s owners are long-term partners rather than short-term profit watchers. They share a vision of increasing EA’s value over years and decades. 

Being private supports exactly this kind of long-range strategy: as one industry governance analysis noted, Valve’s private status enabled “strategic decisions focused on long-term growth and development, without the pressures of public market scrutiny” 

We can expect EA to follow suit — perhaps not immediately, as the transition happens — but in the coming years, the company can balance its stable of annual best-sellers with innovative ventures that secure its future in the ever-evolving gaming landscape.

A new chapter for Vision 2030

For ����ֱ��, this acquisition is far more than just a financial investment; it is a strategic milestone in the Kingdom’s ambitious journey to diversify its economy and lead in the industries of the future. 

It aligns directly with Vision 2030, the national roadmap championed by Crown Prince Mohammed bin Salman to reduce dependence on oil and foster growth in sectors like technology, entertainment, and sports. Gaming sits at the intersection of these priorities - it is high-tech, it appeals to youth and global audiences, and it even overlaps with sports (through e-sports and sports-themed games). 

By acquiring a global gaming leader like EA, ����ֱ�� has signaled that it intends to be not just a participant, but a leader in this $180+ billion industry.

This move did not come out of the blue. In recent years, ����ֱ�� through the PIF and its subsidiaries has been steadily increasing its footprint in the gaming and e-sports arena. The fund had already taken minority stakes in several renowned game companies, including Nintendo, Capcom, and Take-Two Interactive, and earlier in 2023 it became the largest outside shareholder of EA with a nearly 10 percent stake. 

Through the PIF-owned Savvy Games Group, the Kingdom announced plans in 2022 to invest $37.8 billion in the gaming sector through 2030. This comprehensive investment strategy involves everything from acquiring a major game publisher (EA now fulfills that goal) to taking stakes in smaller developers, building gaming infrastructure, and nurturing the local game development ecosystem. 

In the crown prince’s own words at the launch of Savvy Group: “Savvy Games Group is one part of our ambitious strategy aiming to make ����ֱ�� the ultimate global hub for the games and e-sports sector by 2030. We are harnessing the untapped potential across the esports and games sector to diversify our economy, drive innovation ... and scale the entertainment and esports offerings across the Kingdom.”. This EA acquisition is a powerful validation of that statement — it demonstrates to the world that ����ֱ�� is fully committed to the gaming industry for the long haul.

Global investors and industry observers are taking note. The deal instantly positions ����ֱ�� as one of the most significant players in the gaming business globally. By leading the biggest gaming buyout ever executed by financial investors, the Kingdom has shown it can mobilize capital and expertise at a scale previously associated only with the likes of big tech companies. 

This enhances ����ֱ��’s image as a digital economy innovator and a serious player in international markets. No longer viewed solely as a consumer of entertainment, the Kingdom is now seen as a creator and owner of leading entertainment assets. Every major discussion about the future of video games will include ����ֱ�� as a key stakeholder — whether it’s conversations about virtual reality, game streaming platforms, or the next evolution of e-sports. This kind of soft power and influence is exactly what Vision 2030 seeks: to place ����ֱ�� at the forefront of global trends and industries.

Importantly, the infusion of Saudi capital comes with an expectation of mutual benefit: sharing knowledge and building local capacity. Part of being a global hub means hosting major events and studios on Saudi soil. We anticipate that EA and other PIF-invested companies will expand their presence in ����ֱ��, whether through regional offices, partnerships with local studios, or bringing international gaming events to the Kingdom. In recent years ����ֱ�� has already hosted high-profile e-sports tournaments and gaming conventions; with EA in the family, one could imagine official EA Sports FC championships or Battlefield esports leagues holding finals in Riyadh, attracting global fans and media. Such events not only boost tourism and the economy, but also firmly establish Saudi cities as destinations on the world gaming map.

Furthermore, ����ֱ��’s financial commitment to gaming is matched by a commitment to cultivating talent and jobs at home. Alongside blockbuster deals, the Kingdom is launching initiatives to grow a domestic game development industry from the ground up. Savvy Games Group’s strategy includes incubating 250 new game companies in ����ֱ�� and creating 39,000 jobs by 2030. 

Educational programs, game developer bootcamps, and partnerships with global companies for knowledge transfer are all part of the plan. By acquiring EA, ����ֱ�� gains access to one of the best talent pools in the industry. This opens the door for extensive collaboration and training opportunities — from internships for Saudi tech graduates at EA studios, to mentorship programs where EA’s veteran developers coach emerging Saudi game creators. Over time, such exchanges will raise the skill level of our local workforce, enabling Saudi-led studios to create games that can hold their own on the world stage. 

The ultimate Vision 2030 goal is to transform ����ֱ�� from primarily a buyer of entertainment into a producer and exporter of entertainment. With EA under PIF’s wing and myriad investments in place, that vision comes significantly closer to reality.

Empowering Saudi gamers and the local community

The biggest winners from this historic deal may be Saudi gamers themselves, a community of over 25 million, among the most passionate in the world. Just as devoted to titles like EA Sports FC and Call of Duty as any global audience, they now stand to benefit directly as a global gaming giant becomes partly their own.

One major improvement Saudi players can look forward to is better infrastructure and support for online gaming. For years, Middle Eastern gamers have struggled with high latency (ping) due to the lack of local game servers, a frustrating disadvantage when competing in fast-paced online matches. 

With Saudi influence in EA’s operations, we anticipate a push to deploy local servers for EA’s popular online titles in the region. This would drastically reduce lag and make online play smoother and more enjoyable for players in ����ֱ�� and neighboring countries. In fact, even before this deal, there has been momentum in setting up Middle East servers for big franchises; now, with direct stakeholder input, such technical upgrades are likely to accelerate. The result will be a level playing field where Saudi and regional gamers can compete with the world without technical handicaps — a long-awaited change.

����ֱ�� has already shown it can stage world-class gaming spectacles, most notably with the Esports World Cup, which brought top global talent and millions of fans together. Building on this proven capability, the Kingdom is now in a position to do even more. With deeper partnerships, talent exchange, and access to international know-how, future tournaments promise to be bigger, more competitive, and more inspiring for local players. In this context, EA’s presence adds another dimension expanding the range of titles and circuits that could come to Saudi soil, from EA Sports FC to Battlefield. Together with PIF and Savvy’s resources, this creates not just events, but an ecosystem that puts ����ֱ�� firmly on the global esports calendar. For Saudi gamers, it means the chance to compete against the best in the world at home, and for young talents, the opportunity to grow into champions who inspire the next generation.

Crucially, the EA acquisition also paves the way for educational and career opportunities in gaming for Saudi youth. EA is not just a games publisher; it’s a vast organization encompassing game development, art, engineering, marketing, and more. Through partnerships, EA can offer training programs, internships, and knowledge exchanges that allow Saudis to learn the craft of game development directly from one of the best in the business. Imagine Saudi computer science students interning at EA Vancouver on the Frostbite game engine, or local artists learning about 3D animation from the makers of The Sims. 

These kinds of opportunities could now be within reach. We may also see EA collaborating with Saudi universities to establish game design curricula or research labs (for example, in artificial intelligence for gaming). Over time, such collaborations will build a homegrown talent pipeline. Some of those trained may join EA’s international studios, while others might work for burgeoning Saudi game studios or start their own companies, seeding a vibrant local industry. The value of this human capital development cannot be overstated it means the impact of the deal goes well beyond financial returns and into the realm of societal development.

Additionally, Saudi gamers can expect more localization and representation in games. As a significant market and now an investor, ����ֱ��’s preferences will carry more weight. We could see better Arabic language support in EA titles, culturally relevant content, and regional marketing campaigns that speak to our local identity. EA has dabbled in regional initiatives in the past (for instance, featuring Middle Eastern leagues in its football games); now there’s an incentive to go further. This is a win-win: players feel more seen and catered to, and EA deepens its connection with a key audience.

Conclusion

In summary, the PIF’s acquisition of Electronic Arts is a transformative moment for both the company and ����ֱ��. It represents the fusion of a top-tier gaming powerhouse with a nation that has both a fervent love for games and a visionary determination to be a leader in the digital economy. As a Saudi citizen and an avid gamer, I find myself filled with optimism. 

I still remember starting to use Steam back in 2005 at the time, it was a bold new platform that few believed would succeed. Yet with patience and innovation, it changed the gaming world. Those early years of gaming in ����ֱ�� weren’t easy: we linked our Xbox consoles over LAN to play Halo, battling high ping and unstable connectivity that often made online play frustrating. We resorted to purchasing gift cards to buy games from international stores, finding ways to participate in a global community that didn’t fully serve us. Now, seeing my country take bold strides investing billions, embracing new ideas, and believing in the potential of our youth I feel that same sense of excitement I once felt when Steam transformed gaming. Only this time, it is ����ֱ�� that is driving the transformation, not as a consumer on the sidelines, but as an owner, innovator, and global force shaping the future of the industry.

To the skeptics who wonder if this is just a flash in the pan or a vanity purchase, the evidence points to the contrary. This acquisition is grounded in a clear strategy: it builds on years of careful investment and is part of a holistic plan to develop an entire ecosystem around gaming and e-sports. ����ֱ�� is not only investing capital but also investing in people, infrastructure, and innovation. The Kingdom is effectively saying: we are here to stay in this industry, and we have something to contribute. The deal is also a strong vote of confidence in the enduring power of gaming. After the pandemic boom, the industry faced a period of slower growth and correction, with revenues stabilizing and companies adjusting to new consumer patterns. Against this backdrop, committing $55 billion signals not only faith in EA’s portfolio but also in the long-term resilience and expansion of interactive entertainment as a whole. By financing the largest LBO ever, the PIF and its partners are signaling their belief that interactive entertainment will continue to grow and thrive, and that blockbuster franchises and new gaming experiences will deliver value for decades to come.

For Electronic Arts, a new chapter begins where it can pursue greatness with patient capital and a supportive ownership structure. We can expect EA to remain a global household name in gaming, now supercharged with the ability to take creative risks and expand its vision. For ����ֱ��, this moment solidifies its transition from a consumer to a creator in the world of games. The Kingdom is leveraging its passion (millions of eager gamers) and its resources (Vision 2030 investments) to shape the future of a sector that speaks to the next generation. This is a story of optimism and empowerment.

As we look to the future, it’s clear that the partnership of ����ֱ�� and Electronic Arts has the potential to reshape the global gaming landscape for the better. Gamers worldwide stand to benefit from the innovations and stability that this deal can bring to EA’s games. Investors are witnessing the rise of a new powerhouse in their sector. And perhaps most importantly, an entire generation of Saudi creatives and players see doors opening that were once distant dreams. The message is unmistakable: ����ֱ�� believes in the power of gaming — culturally, economically, and as a force for community — and is ready to lead boldly. This historic acquisition is not an endpoint but a launchpad for greater achievements. 

In the coming years, I am confident we will celebrate more Saudi successes in gaming from homegrown hit games to champions on the world e-sports stage ,all supported by the foundations being laid right now. It is a proud time to be a Saudi gamer, and an exciting time to be part of the global gaming community watching this grand vision unfold.

• Yazeed Abdulaziz Abunayyan is Saudi financial and administrative adviser with over 20 years of experience in wealth management, corporate banking, and investment strategy.