The Public Investment Fund (PIF) of Saudi Arabia has recently targeted the videogames business, and it now owns a stake in numerous major players. Activision Blizzard, Capcom, Embracer Group, Nexon, Nintendo, Take-Two Interactive, and other companies have shares in the Saudi PIF (some of which are owned through subsidiaries). It has now more than doubled its existing position in Electronic Arts and owns just under 10% of the worldwide conglomerate.
With approximately 274 million shares outstanding, the PIF now owns 24.81 million more shares in EA than it did previously, or over 9% of the total. Since EA's business is booming, the "why" is not really a mystery. According to its most recent figures, revenues for the most recent fiscal year were $7.4 billion, up 6% from the previous year. The publisher expects revenues for the fiscal year ending March 31, 2024, to be between $7.3 and $7.7 billion. In the earnings call, EA attributed these profits in large part to the success of its live services in titles like Apex Legends and FIFA 23.
Saudi Arabia, on the other hand, has been investing billions in video games in an effort to reduce its reliance on oil. However, investing in Saudi Arabia is always fraught with risk given the nation's appalling record on human rights, criminalization of homosexuality (with penalties ranging from flogging to execution), and allegations that its crown prince Mohammed bin Salman ordered the 2018 murder of journalist Jamal Khashoggi. The Saudi authorities made significant attempts to hide Khashoggi's murder. The Saudi PIF is led by the crown prince.
Regrettably, money holds significant influence. The Saudis possess a substantial amount of wealth and have extended their reach into various corners of the gaming industry.