Saudi Money Makes a Big Splash in Video Games

🌈 Abstract

The article discusses how Saudi Arabia's investments in the video game industry have become hard for struggling American companies to resist, even though not all gamers are happy about it.

🙋 Q&A

[01] Saudi Arabia's Investments in the Video Game Industry

1. What are some of the ways Saudi Arabia is investing in the video game industry?

• The Saudi government, through its Public Investment Fund (PIF), has said it will invest $38 billion in video games by 2030.
• The PIF and its subsidiaries have spent roughly $6 billion buying up game companies and $14 billion on stock investments.
• The PIF created Savvy Games Group to spearhead its planned $38 billion investment in the industry, and the company has acquired key industry players like Electronic Sports League and Faceit.
• Saudi Arabia is also building a gaming city with an esports district called Qiddiya.
• Saudi companies have partnered with major video game companies like Sony, Activision Blizzard, and media companies like Rolling Stone and CNN.

2. What are some of the criticisms of Saudi Arabia's involvement in the video game industry?

• Some critics have labeled the investments as "sports washing" or "games washing", an attempt to polish the country's reputation and human rights abuses with entertainment and tourism.
• Some gamers have denounced the country's involvement and vowed to boycott its events.
• It can be jarring for visitors to see women working at a conference in a country where women's rights have historically been very restricted.

3. How have some esports teams and influencers responded to Saudi Arabia's involvement?

• Some esports teams, like Team Liquid, have tried to make a social statement by wearing Pride logos during competition while still accepting Saudi cash.
• Some influencers, like sportscaster Joshua Howard, have justified their participation by citing the financial opportunity, even though they understand why others may be upset.

[02] The Esports World Cup in Riyadh

1. What was the Esports World Cup event in Riyadh?

• The Esports World Cup was the inaugural esports event held in Riyadh, Saudi Arabia.
• It featured a $60 million prize pool, the largest ever for an event of its kind.
• The event was organized by the Esports World Cup Foundation, a Saudi nonprofit.
• Major partnerships were formed for the event, including with Sony as a founding partner and Warner Bros. Discovery to stream it on CNN.

2. How did the event showcase Saudi Arabia's investment in the video game industry?

• The event featured a 30-foot-tall replica gold trophy and elaborate lighting, showcasing Saudi Arabia's wealth and ambition in the esports space.
• The large crowds and production value were meant to position the event as a "lighthouse in the world sports calendar", according to the CEO of the Esports World Cup Foundation.

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