Saudi Arabia Steps into Gaming's Big League with EA Deal

Commenting on the closure, Turqi Alnowaiser, the deputy governor and head of international investments at PIF, said that having been a minority investor in EA for more than five years, the investment fund has a “deep understanding of EA's unique platform, massive global sports and gaming franchises, and iconic IP”.

Alnowaiser said that entertainment and sports are “key areas of strategic focus for PIF”, as they are among the “fastest growing and evolving sectors around the world”.

“Together, the Consortium is uniquely positioned to be a long-term partner to EA's management team in driving sustained growth and innovation for EA and the industry”, he said.

Since the acquisition was first announced last year, gaming journalists have speculated about the nature of that management partnership and what it might mean for EA's future direction, especially given the debt now weighing on the newly private company and Saudi Arabia's social conservatism.

Bloomberg journalist Jason Schreier said that the debt level could mean “mass layoffs, more aggressive monetization, and other big cost-cutting measures”, a sentiment echoed by PlayStation expert Colin Moriarty.

Moriarty noted that, as a result of the $20bn in debt financing arranged for the acquisition, EA’s debt had risen from approximately $2.2bn to $22bn and was “now 10 times higher” than when it was publicly traded.

“Needless to say, you're about to see in-game monetization schemes you couldn't even possibly imagine”, Moriarty said, alluding to a practice that has become increasingly common in the gaming industry, even as it has attracted heightened criticism.

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Video game advocacy organization Players Alliance crystallized many of these criticisms in its Block the Deal campaign, saying it objects to the Saudi-led takeover on multiple grounds, including cultural, political and economic concerns.

The group described video games as reflective of cultures and people through their storylines, characters and “representation”.

Because Saudi Arabia's PIF leads the consortium, Players Alliance said there is a “large concern” that creative decisions could be negatively influenced, “leading to themes such as free speech, gender, LGBTQI+ and other aspects of western politics being reduced or fully censored across major franchises”.

Saudi "Sportswashing" 2.0?

The advocacy organization referred to the “sportswashing” accusations leveled at Saudi Arabia, which emerged as a result of the country's increased investment and involvement in the sporting industry.

Examples include the purchase of Newcastle United FC via the PIF, the launch of LIV Golf and its successful 2034 FIFA World Cup bid.

“There is also a concern of in-game features being skewed in favour of the ideology of these regions. Saudi Arabia's vision 2030 has already been accused of ‘Sportswashing’ in order to improve the countries [sic] reputation and economic diversity, and this buyout could see the same thing happen in the gaming industry”, Players Alliance said.

On the question of debt repayment, the group said that EA has already been accused of “aggressively monetizing” its games, and that the need to repay its soaring debt could entrench practices associated with that monetization.

It referenced controversial “gambling style loot box mechanics” and microtransactions, which have become increasingly common in recent years despite attracting derision from gamers.

While the Players Alliance is concerned about these changes, others have expressed cautious optimism that Saudi investment in gaming might lead to fewer progressive elements in popular games.

Writing in American publication The Federalist after the purchase plans were announced last year, cultural commentator Douglas Blair suggested that EA's Saudi owners would be “less insufferable than old woke ones”.

Blair pointed to the failure of EA's flagship title, Dragon Age: The Veilguard, which underperformed after clips went viral showing characters discussing left-wing concepts such as nonbinary identities and misgendering.

Saudi Arabia's move into what is known as AAA (triple-A) gaming comes amid a broader push to invest in a range of cultural industries. Beyond gaming, the country has been investing heavily across the wider cultural and entertainment landscape, spanning cinema and film production, large-scale live events and festivals, media and content creation, and major sporting competitions. This buildout is paired with a parallel push into tourism and hospitality infrastructure, as the Kingdom works to position itself as a global entertainment and leisure destination.

Much of Saudi Arabia's activity in this area has been channeled through the PIF, which its website describes as “the engine driving the transformation” of the country's economy. The fund is chaired by Saudi Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud.