The Gulf strengthened its position in the global gaming industry with Saudi Arabia’s Public Investment Fund-led consortium acquiring Electronic Arts for $55 billion. The deal, completed last week, marks one of the biggest transactions in gaming history.
The region’s gaming ambitions have evolved rapidly. A decade ago, Gulf markets were largely associated with esports sponsorships. Five years ago, the focus shifted towards strategic investments. The EA acquisition now puts the region among the major owners in global gaming. However, the next opportunity could lie beyond owning established publishers and franchises.
Games like FIFA, The Sims, and Madden require advanced technology long before they even get to the consumer. Game engines form the backbone for graphics, physics, networking, and gameplay.
Firms like Epic Games and Unity have established dominance in this level of the chain through many years of development into technology and skilled professionals. The Gulf can look to establish itself in this portion of the value chain.
The Gulf aims to build a stronger position in this part of the value chain. Instead of only acquiring publishers, the region could develop tools and platforms that help creators build the next generation of games.
The broader question for the Gulf is whether it can move beyond owning successful gaming products and begin building the technologies behind them.
The EA acquisition shows how serious the region is about gaming. The real test may come later in something much less visible but equally important, game-development technologies designed and manufactured in the Gulf.
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