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[Axios] Saudi Arabia to invest $37 billion in gaming

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adamsapple

Or is it just one of Phil's balls in my throat?
So they will buy Sony

I think Sony's market cap is a little over 13bn lol. EA is also way above $13bn if I'm not mistaken.

If they're already in serious talks to buy a publisher, it's either Ubisoft or Namco or hell even Square Enix.
 
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Futaleufu

Member
It has to be Capcom. They already own 5-10% and are pushing for esports.

They didnt buy SNK overnight. First they got 10%, then 49% then the whole company.
 
So they’ll stay multiplatform? Works for me

Tim And Eric Idk GIF
 

yurinka

Member
So they will buy Sony
No they would need like 4 or 5 times or more money than this budget and to apply all that budget only in this acquisition, not in multiple acquisitions and investments. And Sony would have to want to sell, which isn't the case. And the Japanese government shouldn't block to tech companies like Sony from being sold to foreigners as it's the case of Sony.

Please be Ubisoft so I can continue to not give a shit about them.
Ubisoft doesn't want to sell and covered their ass against unwanted acquisitions recently with the help of Tencent. So won't happen.

I think Sony's market cap is a little over 13bn lol. EA is also way above $13bn if I'm not mistaken.
SIE alone makes $25B per year. Sony's market cap is around $84B and this is considering the yen is very weak now, with a stronger yen would be higher. And well, to acquire it would mean to pay a premium, which in recent big gaming companies has been around 40%, 60% and is rising. So let's say they only would pay a 50%, then to buy Sony would cost around $125B or more. And that would be if Sony would and to sell and if the Japanese government would allow it, which isn't the case.
 
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adamsapple

Or is it just one of Phil's balls in my throat?
So which one of these was the size of Zenimax junior?

At least 2 of them are more than what MS paid for Zenimax.

I shouldn't have to pull out a calculator for you here bro seriously lol

And all these happened before that acquisition, so thicc_girls_are_teh_best thicc_girls_are_teh_best 's earlier assertion that MS enabled this is completely and utterly wrong.

Not to mention the Kingdom has been investing billions in all initiatives, including gaming, for years now., This is not a sudden/unprecedented move.

Now let's hug it out. 🫂
 
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OZ9000

Banned
As long as this stops the woke fest I see in games nowadays then I don't mind.

I kind of miss gaming in the late 90s and 2000s - there was no drama and BS; just good quality vidya gaims.
 

.Pennywise

Banned
Doesn't seem to be a serious investment to be honest, that's like the spare change they got from buying something from their actual pocket change to them.
 

GHG

Gold Member
The worry is that this can change, at any point, in the near to semi-distant future. In fact, there's a good chance of that happening because when governments are directly pumping money into entertainment, at some point propaganda always rolls along.

Doing some looking into government-assisted propaganda in Hollywood, for example, is pretty eye-opening to say the least. And I'm not talking about the modern propaganda; I'm talking about stuff dating back to the '50s, '60s and '70s.

You're saying this like the western woke propoganda we're currently witnessing is any better.
 
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Jinzo Prime

Member
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MScarpa

Member
Unless the Saudi buyers somehow interfere with the nuts and bolts of development, it's a way better option compared to, let's say, MS acquiring the publisher and making its titles exclusive. But that's just me...
I'm not locked in to just one platform unlike some people. In your example with MS, it's day and date on Gamepass, so thats a great thing.
 
Take Two bought Zynga for 12.7 Billion
Tencent bought 84% of Supercell for 9 Billion
Activision bought King for 6 Billion


Take a seat junior :messenger_blowing_kiss:

Take Two/Zynga was after MS purchased Zenimax and after MS announced intent to buy ABK

Supercell were 100% mobile focused, no one in console gaming gives a flying crap about them

King is also 100% mobile, no one in console gaming cared about Activision buying them plus Activision was still a 3P publisher afterwards.

It has to be Capcom. They already own 5-10% and are pushing for esports.

They didnt buy SNK overnight. First they got 10%, then 49% then the whole company.

Yeah, this is the worrying part. Similar investment trends between SNK and Capcom, though IIRC it's a different branch that owns SNK not tied to this one talking about buying its own publisher.

It's all funded by the same source though, and that's a bit of a problem. These branches or whatever are basically just subsidiaries.

So they’ll stay multiplatform? Works for me

Tim And Eric Idk GIF

I mean, that's the only silver lining in this. It's still industry consolidation, it may still potentially mean LESS games, worst value for the customer. But at least they still stay a 3P.

No they would need like 4 or 5 times or more money than this budget and to apply all that budget only in this acquisition, not in multiple acquisitions and investments. And Sony would have to want to sell, which isn't the case. And the Japanese government shouldn't block to tech companies like Sony from being sold to foreigners as it's the case of Sony.

Not only that, but Sony's also a protected company under Japan's laws, since they're involved in Japanese finance, medical, and military fields. So they're simply off-limits for any foreign entity to even think about purchasing.

They also have investments from Japanese banks and IIRC are setting up their own bank in Japan. So yeah, Sony shouldn't even be a part of this conversation in terms of companies these Saudi groups or any group/company/firm for that matter would look to buy, especially if they're non-Japanese.

At least 2 of them are more than what MS paid for Zenimax.

I shouldn't have to pull out a calculator for you here bro seriously lol

And all these happened before that acquisition, so thicc_girls_are_teh_best thicc_girls_are_teh_best 's earlier assertion that MS enabled this is completely and utterly wrong.

Not to mention the Kingdom has been investing billions in all initiatives, including gaming, for years now., This is not a sudden/unprecedented move.

Now let's hug it out. 🫂

You seem to be ignoring that in the other examples you listed, those were all still 3P publishers remaining 3P publishers after buying independent developers, or whatever. The open market for independent 3P publishers remained the same, and remained stable. It's nowhere near the same as a literal platform holder buying up big 3P publishers and removing them from the open market of 3P companies, causing that segment of the market to effectively shrink.

I guess by "the Kingdom" you're referring to United Kingdom or Britain? OK, and? That's one thing, and as long as they either do that through investing into other organizations, firms etc. that then invest into the games, that at least limits the influence they can have on the games in terms of censorship. Also let's not pretend that the UK or Britain are "just as bad" as Saudi Arabia when it comes to modern human rights or civil rights; obviously those nations have their history of BS but vast majority of people have a better chance at a decent quality of life in the UK or Britain over living in Saudi Arabia.

You're saying this like the western woke propoganda we're currently witnessing is any better.

Trading shit for shit still leaves you with shit in your hand :/
 

John Wick

Member
At least 2 of them are more than what MS paid for Zenimax.

I shouldn't have to pull out a calculator for you here bro seriously lol

And all these happened before that acquisition, so thicc_girls_are_teh_best thicc_girls_are_teh_best 's earlier assertion that MS enabled this is completely and utterly wrong.

Not to mention the Kingdom has been investing billions in all initiatives, including gaming, for years now., This is not a sudden/unprecedented move.

Now let's hug it out. 🫂
What are you going on about? Non of those companies is the size of Zenimax. They are mainly mobile developers/social media.
Why have you bought valuation into it? I never mentioned the valuation or sell price.
 

adamsapple

Or is it just one of Phil's balls in my throat?
You seem to be ignoring that in the other examples you listed, those were all still 3P publishers remaining 3P publishers after buying independent developers, or whatever. The open market for independent 3P publishers remained the same, and remained stable. It's nowhere near the same as a literal platform holder buying up big 3P publishers and removing them from the open market of 3P companies, causing that segment of the market to effectively shrink.

We've seen this discussion elsewhere as well, the market share is not shrinking, it is gaining more visibility, especially considering the biggest franchises some of y'all boil it down to, i-e Call of Duty, will remain multiplatform.

I guess by "the Kingdom" you're referring to United Kingdom or Britain?

Kingdom of Saudi Arabia, just short-handing Kingdom for it.


What are you going on about? Non of those companies is the size of Zenimax. They are mainly mobile developers/social media.
Why have you bought valuation into it? I never mentioned the valuation or sell price.

What else is there to talk about right now but valuation, since we literally don't know which publisher KSA are looking to acquire, just a ball park of their budget for the acquisition.

We're weighing the scale of their purchase in monetary value against other similar acquisitions. thicc_girls_are_teh_best thicc_girls_are_teh_best 's original post which I quoted was talking about companies buying big publisher, there was no mention of platforms and/or exclusives etc.


Mobile games and none of them are platform holders 🤣

Log off and delete your account


Fcvfje2acAINLZj.jpg:large



I still owe you an adaptive hug.


You're saying this like the western woke propoganda we're currently witnessing is any better.


MBS is a hip mofo, he hasn't forced them to put on a veil on Blue Mary so far.

I think we're gonna be OK :messenger_grinning_sweat:
 
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Amiga

Member
If it was me it will be between namco bandai and ubisoft

Better to avoid the big publishers with bloated stock prices. Go for smaller but talented developers then build them up. Imagine Y's with the graphics of Horizon Forbidden West instead of the graphics of a smartwatch. Another good value idea would be to buy Konomi's IP and then buy Kojima Productions.
 

AmuroChan

Member
Maybe some companies, but MS is very connected to the military and other security-related branches. I simply can't see it going to a foreign company grip.

I don't see that happening either, but I also don't think a foreign entity needs to buy out Microsoft to acquire military or national security secrets. That information is already compromised as far as I'm concerned. We had a sitting congressman who literally slept with a Chinese spy. Foreign entities have much easier ways to acquire our national secrets than to buy up a software company.
 

NickFire

Member
I Know it’s controversial within the sport but they’re trying to grow a PGA competitor. Lots of guys making easier money from their investment. They also have a decent pro wrestling following I’m guessing since they have a big show there each year. If they want to try out gaming then best of luck and hopefully they bring something fresh and interesting. Lots of potential jobs for people too. Only thing I’m not too keen on is buying a pub. I’d rather someone making a new investment that big start a new one, get some devs and open some new devs, and hire top talent from elsewhere and let proven recent results run the technical stuff.
 

Neolombax

Member
Theyre looking to diversify their income. Gaming can be quite lucrative nowadays, esp with microtransactions and such. Its all business, I dont think theyre looking into changing gaming into a more halal business lol.
 

nial

Gold Member
hey, at least games would still be multiplatform.
Happy Adam Scott GIF by Sky
"We're introducing the Savvy console, the home to experience Assassin's Creed, Grand Theft Auto, Resident Evil, Tomb Raider and Battlefield all in one place! Only for $750."
 
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EDMIX

Member
Why?

Is Saudi Arabia a particularly large gaming market? Is it a fast-growing one?

Is the intention here to position SA as a new gaming development hub in order to grow its own domestic gaming market by producing nationally developed games for its respective audience?

I don't really get this.

It almost feels like a case of the Saudi Prince being an avid gamer and is just dicking around with his country's vast oil wealth to fuel his passion project.

Maybe, but any gamer with that type of wealth regardless of where they are from would probably do the same.

P Panajev2001a true, but a lot of it is based on diversify that portfolio as its clear the biggest markets on Earth for driving, United States, China, India, UK, Germany, Japan etc have already set their dates on banning the sale of the combustion engine. China imho being the most massive to make that shift as they dictate the entire world's economy with this shift.

So 2030 to 2035 is the target for many countries right now and its clear Saudi Arabia like many countries can see the writing on the wall. From now to 2035 in regards to tech and investments, thats a very, very short time frame and folks need to act now and invest wisely, so I'm not shocked you are seeing this. Oil of course will still be a huge money maker for many industries, but its clear those days of massive returns is behind them. I don't even see how it can continue to this exact same height now by 2035 tbh.
 
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MadPanda

Banned
Why?

Is Saudi Arabia a particularly large gaming market? Is it a fast-growing one?

Is the intention here to position SA as a new gaming development hub in order to grow its own domestic gaming market by producing nationally developed games for its respective audience?

I don't really get this.

It almost feels like a case of the Saudi Prince being an avid gamer and is just dicking around with his country's vast oil wealth to fuel his passion project.

They want to diversify and move away from being too dependent on oil. It's a smart idea, we'll see how they execute it.
 
What's the problem with this? More money to create more games it's a good thing to have financially stable developer's.
The industry has more money than it has ever had. It also has the most scummy practices, more unfinished and broken games launching, mtx, p2w, invasion of privacy....

Having more money enables more greed. When it was artists and needs making games first and foremost as a passion project, the industry was in a more healthy and stable situation.

This splintering between massive corporations that frankly couldn't give a fuck if gaming succeeds or not - outside of making a loss on their portfolio, leads to the disaster of an industry we have today.
 

Lunarorbit

Member
Why?

Is Saudi Arabia a particularly large gaming market? Is it a fast-growing one?

Is the intention here to position SA as a new gaming development hub in order to grow its own domestic gaming market by producing nationally developed games for its respective audience?

I don't really get this.

It almost feels like a case of the Saudi Prince being an avid gamer and is just dicking around with his country's vast oil wealth to fuel his passion project.
FUCK BIN SALAAM. He is an avid gamer that's one of the major reasons this is happening. He's using tax money to invest in gaming to diversify and also to clean his image cause face it most gamers either don't care about his totalitarianism or turn a blind eye to it.
 

oldergamer

Member
Since Sony can't make acquisitions like these...it's better than MS acquisitions. At least those games will remain multiplatform.
I disagree with you. Its better if ms are making the acquisitions. Id rather a console maker and multiplatform publisher buy game companies then some billionaire or investment firm that knows nothing of the industry. Ms is a software company and games are software. Period.

We already saw google get in and out of gaming very quickly. They are probably closing studios. Apple has little interest, and amazon hasnt made a splash
 
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