The Saudi Arabian government is reportedly investing $38 billion in the country's capability to become the next center for the video game industry.
The Saudi Arabian government is reportedly planning to invest $38 billion into the country's gaming sector, betting on the potential for the country to become the next hub for the video game industry.
As reported by Bloomberg, Savvy Gaming Group, a subsidiary of the Public Investment Fund, intends to collaborate with the companies they have invested in by jointly publishing, operating their esports business, or creating new IPs.
Earlier, the Saudi government, via the Public Investment Fund, a sovereign wealth fund chaired by crown prince Mohammed bin Salman, raised its stake in Nintendo to 8.26%, which marks an increase from the previously acquired 6% and makes. Along with this, it possesses shares in Embracer Group, EA, and Take-Two.
Additionally, Savvy stated that it plans to shift its focus from esports ventures and concentrate on establishing itself as a publisher and developer.
"We are now more of an esports company than a games company. What we’re doing this year is focusing more on game publishing and development," Savvy CEO Brian Ward told Bloomberg. "The engagement in esports is still off the hook. It’s fantastic. It’s just that the monetization doesn't match the engagement."
Savvy's current objective is to strengthen its resources and influence in the fields of game development and publishing. One of its operating companies is Savvy Games Studios, a studio that has around 45 employees. Established approximately a year ago, it aims to create a mobile game as its initial project, followed by a console game.
The state-owned company is also reportedly considering the purchase of a publisher, with a budget of $13 billion allocated for the acquisition, as stated by Bloomberg.
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