Why are Saudi Arabia and the United States investing billions in video games, and what will this mean for the global market?

The unexpected purchase of the major video game publisher Electronic Arts by a consortium led by the Saudi investment fund and American financiers became one of the most high-profile deals of the year. The deal amount—$55 billion—even surprised seasoned analysts. This naturally raises the question: are both sides really pursuing only commercial goals, or is there something more behind these investments? Why did this particular deal become so important for the entire global industry, as well as for political and social processes in the US and Saudi Arabia?

Record-breaking deal: who bought whom and for how much

Several figures are at the center of attention. The main role was played by the Saudi Arabian sovereign fund PIF, which already owned 10% of Electronic Arts shares. They were joined by the Silver Lake fund and American investor Jared Kushner, known as Donald Trump’s son-in-law and former White House advisor. The final deal amount reached $55 billion, making it the largest private buyout in the history of the gaming industry. For comparison, previous purchases—such as Microsoft’s acquisition of Activision Blizzard for $69 billion in 2022—were similar in size, but in the case of Electronic Arts, a significant portion of the deal is financed with borrowed funds.

EA’s portfolio includes some of the world’s most recognizable gaming franchises. Among them are EA FC (formerly FIFA), Madden NFL, The Sims, Apex Legends, and many others. These titles shape the face of the modern entertainment industry and bring the publisher billions of dollars annually.

Why Saudi Arabia is investing in gaming companies

Can such a large deal be viewed solely as business activity? For Saudi Arabia, this is primarily a strategic step within the ambitious Vision 2030 program. The main goal of this program is to reduce the economy’s dependence on oil and gas exports, which provide about half of all government revenues, and to develop new sectors, including sports, entertainment, and information technology.

Previously, PIF had already invested in other significant projects: the purchase of the football club Newcastle United, the creation and development of the LIV Golf league, and the financing of large-scale cultural events. According to PIF’s deputy governor Turki Alnowaiser, the fund aims to build a global ecosystem around gaming and esports, bringing together fans, developers, and content creators.

“Sportswashing” is also becoming an important element—a term used by human rights activists to describe attempts to improve one’s international image through major sports and cultural investments. Investments in video games are becoming part of Saudi Arabia’s soft power and a tool for shaping a positive image of the country in the West.

Youth, Esports, and Saudi Arabia’s Internal Challenges

Why have video games and digital entertainment become so attractive to the Saudi elite? It’s not just about potential profit, but also about social objectives. More than 70% of Saudi Arabia’s population is youth under the age of 35. Many of them grew up with consoles and mobile games, and Crown Prince Mohammed bin Salman himself has repeatedly confessed his love for Super Mario.

Experts emphasize that the state uses entertainment projects to engage youth and create new jobs. Professor Simon Chadwick of Emlyon Business School notes that such initiatives reduce the risk of radicalization among young people and minimize the likelihood of mass protests. This is especially relevant against the backdrop of events in other countries in the region. For example, in Morocco, mass protests were triggered by young citizens’ dissatisfaction with government spending priorities: the authorities are building stadiums for the 2030 World Cup, while education and healthcare remain in crisis.

American interest: the role of Kushner, Trump, and financial partners

How can the involvement of such influential American figures in this deal be explained? Jared Kushner, who heads the investment fund Affinity Partners, has long maintained close relations with Mohammed bin Salman. Silver Lake, a major American investment fund, regularly participates in deals at the intersection of technology and entertainment.

The political context also matters. Donald Trump actively cooperates with Saudi investors: his golf courses have hosted LIV Golf tournaments, despite resistance from the PGA Tour after the events of January 6, 2021, in Washington. In May of this year, the Trump Organization also signed a contract to build the Trump Plaza complex in Jeddah for $1 billion. All this not only brings significant income to American elites but also strengthens political and economic ties between the two countries.

Criticism, risks, concerns

How are human rights organizations and international observers reacting to this deal? Human Rights Watch regularly points to systemic human rights violations in Saudi Arabia. HRW researcher Joey Shea states: “These investments are used to distract from the human rights crisis. The average fan does not want to support a brutal regime just by buying a game or a ticket to a sporting event.” According to experts, the mass involvement of the public in such projects indirectly contributes to the “whitewashing” of the international reputation of authoritarian regimes.

Sportswashing is not just PR, but an attempt to change the perception of a country on the world stage through sports and entertainment, creating the illusion of openness and progress.

Consequences for the global video game and sports industry

It is worth noting that EA is only one of the major players in this huge market. Video games themselves have become as diverse as possible—from RPGs to simulators. There are also a great many platforms, and the mobile segment is growing faster than all others. According to industry websites, the Plinko game app and other mobile arcade games are rapidly gaining popularity. And EA does not produce these games. The company is generally rather weakly represented in the mobile segment. Therefore, this high-profile purchase is unlikely to have any special impact on the global video game industry.

However, it is already clear that large state funds and politically motivated private investors are gaining direct influence over an industry that for a long time remained relatively independent. The increase in such deals is leading to the formation of new rules in the digital entertainment industry, where the line between business, politics, and culture is becoming increasingly blurred.

Esports and video games are gaining special significance for the economies of the Gulf countries, complementing traditional sources of income. An important indicator was the hosting of the Esports World Cup in Riyadh and the preparation for the first-ever Olympic esports tournament, which will take place in 2027.

What else is behind the impressive numbers

Can the consequences of such a large-scale deal be assessed unambiguously? The motives of the participants remain ambiguous, and the long-term effects for the industry and society are still unclear. It is possible that such large state investments in entertainment companies will lead to a transformation of the market, as well as to new conflicts of interest between commerce and ethics.

History knows examples when state capital influenced the fate of entire industries—for example, Chinese and Singaporean investments in digital services. However, the question of how much such projects serve the interests of society remains open for discussion.