Savvy Games Group

Last updated
Savvy Games Group
Company type Private
Industry Video games
FoundedJanuary 2021;3 years ago (2021-01)
Headquarters Riyadh, Saudi Arabia
Number of locations
69 (2024)
Key people
  • Brian Ward (CEO)
  • Saleh Alfadhel (CFO)
Number of employees
3,450 (2024)
Parent Public Investment Fund
Subsidiaries
Website savvygames.com

Savvy Games Group is a Saudi multinational video game investment, development, publishing and Esports company based in Riyadh, Saudi Arabia. Established in 2021, the company was founded by the Saudi Arabia's sovereign wealth fund Public Investment Fund to foster the growth of the gaming industry in Saudi Arabia and to invest in foreign video game companies. [1]

Contents

History

Savvy Games Group was established in 2021 by Saudi Arabia's Public Investment Fund (PIF) as part of a broader goal of diversifying the Saudi economy and growing the Saudi video game industry. [1]

In 2021, Savvy Games Group acquired shares in three American video game firms, Electronic Arts, Take-Two Interactive, and Activision Blizzard. [2] Savvy Games Group invested $1 billion to buy an 8% interest in Embracer Group in May 2022, and a 5% stake in Nintendo. [3] [4]

On September 29, 2022, Savvy Games Group announced plans to invest $37.8 billion in the video game industry, allocating $13.3 billion for the acquisition and expansion of a prominent video game developers and publishers with the aim of establishing them as a crucial development partner, thus positioning the country as a global gaming hub by 2030. [5] [6] The initiative includes strategic acquisitions, job creation, and GDP growth objectives. The investment entails acquiring minority stakes in leading game publishers and partnering with established industry players to bolster the gaming ecosystem. [7] The initiative aims to create 39,000 jobs, establish 250 gaming companies, and contribute 50 billion riyals to the Saudi GDP, fostering economic diversification and growth. [8]

On April 5, 2023, Savvy Games Group announced its intent to acquire American mobile video game developer and publisher Scopely for $4.9 billion. [9] [10] The acquisition was completed on July 13, 2023. [11]

Embracer Group, renowned for its acquisition of numerous game studios, recently disclosed a major partnership valued at over $2 billion that unexpectedly fell through at the final hour. The identity of the partner was shrouded in mystery until later. In August 2023, it was unveiled that the elusive partner was Savvy Games Group. [12] This failed collaboration dealt a significant blow to Embracer, resulting in a sharp drop in their stock price and necessitating cost-cutting measures such as layoffs and studio closures. [13] Embracer Group has announced plans for a substantial company restructuring, which includes studio closures, employee layoffs, and the cancellation of numerous video game projects. [14] The reasons behind the dissolution of the deal remain undisclosed, but prior to this development, Embracer CEO Lars Wingefors had faced criticism for accepting investment from Savvy, amid concerns regarding human rights violations attributed to the Saudi government. Despite the deal falling through, Savvy still holds its stake in Embracer. [15]

In 2024, Saudi Arabia's sovereign wealth fund, via its investment group Savvy Games, has reduced its stake in Nintendo from 8.58% to 7.54%, though it remains one of Nintendo's largest shareholders. This move comes after earlier reports suggesting Savvy Games might increase its stake in Nintendo, which were later corrected to refer to Japanese gaming companies in general. The fund initially acquired a 5.01% stake in Nintendo in May 2022, which had grown to 8.58% by mid-2024. The Public Investment Fund (PIF) of Saudi Arabia has been actively investing in the video game industry as part of Crown Prince Mohammed bin Salman's strategy to diversify the Saudi economy beyond oil revenues. [16]

Subsidiaries and stakes

Notable stakes

CompanyLocationStake worthOwnership stakeRef(s).
Nintendo Kyoto, Japan N/A7.5% [20] [21] [22]
Electronic Arts Redwood City, California $2.98 billion9% [2] [21]
Take-Two Interactive New York City, New York $1.36 billionN/A [21]
Embracer Group Karlstad, Sweden $1.0 billion8.3% [3] [21]
Nexon Tokyo, Japan $883 million10.2% [23] [21]
Capcom Chūō-ku, Osaka, Japan $332 million5% [24] [21]

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References

  1. 1 2 Batchelor, James (2023-06-07). "What is Savvy Games Group and how is it trying to change Saudi Arabia's image?". GamesIndustry.biz. Retrieved 2024-04-04.
  2. 1 2 Rich Stanton (2023-05-18). "Saudi Arabia now owns 10% of Electronic Arts". PC Gamer. Retrieved 2024-04-04.
  3. 1 2 Partis, Danielle (8 June 2022). "Saudi Arabia acquires $1bn stake in Embracer Group". Gamesindustry.biz . Retrieved 8 June 2022.
  4. ↑ Plunkett, Luke (18 May 2022). "Saudi Arabia Now Owns 5% Of Nintendo". Kotaku . Retrieved 18 May 2022.
  5. ↑ "Saudi Arabia's Savvy Games Group to invest $37.8 billion in esports, gaming". www.sportsbusinessjournal.com. 2022-09-29. Retrieved 2024-04-04.
  6. ↑ Sinclair, Brendan (2022-09-29). "Saudi Arabia sets aside $13 billion to acquire a major publisher". GamesIndustry.biz. Retrieved 2024-04-04.
  7. ↑ "Saudi-based Savvy Games Group unveils $38 billion investments across four sectors - Arabian Business". Arabian Business. 2022-09-30. Retrieved 2024-04-04.
  8. ↑ "Saudi state-backed conglomerate to sink $37.8 billion into video game industry". www.gamedeveloper.com. Retrieved 2024-04-04.
  9. ↑ "Savvy Games Group to buy mobile game publisher Scopely for $4.9B". VentureBeat. 2023-04-05. Retrieved 2023-04-05.
  10. ↑ "Saudi's Savvy Games Buys Gamemaker Scopely For $4.9 Billion". Bloomberg.com. 2023-04-05. Retrieved 2023-04-05.
  11. ↑ "Savvy Games completes acquisition of Scopely in e-gaming push". Arab News. 13 July 2023.
  12. ↑ Yang, George (2023-08-14). "Embracer Group's Partner Who Walked From $2 Billion Deal Finally Revealed". IGN. Retrieved 2024-04-04.
  13. ↑ Parrish, Ash (2023-12-05). "More layoffs at another Embracer Group studio". The Verge. Retrieved 2024-03-05.
  14. ↑ "Report: Embracer's doomed $2B deal was with Saudi-backed Savvy Games". www.gamedeveloper.com. Retrieved 2024-03-08.
  15. ↑ Davis, Wes (2023-08-14). "Saudi group reportedly abandoned $2 billion deal with the Lord of the Rings game company". The Verge. Retrieved 2024-03-08.
  16. ↑ "Saudi Arabia has reduced its stake in Nintendo". VGC. 2024-10-08. Retrieved 2024-10-08.
  17. ↑ Spangler, Todd (2023-04-05). "Mobile Games Company Scopely to Be Acquired by Saudi-Backed Savvy Games Group for $4.9 Billion". Variety. Retrieved 2024-04-04.
  18. ↑ Wilde, Tyler (2022-01-25). "Major esports host ESL Gaming is now owned by Saudi Arabia". PC Gamer . Retrieved 2022-01-25.
  19. ↑ Morris, Iwan; Writer, Staff (2023-08-17). "Savvy Games Studios to become Steer Studios in major rebrand". pocketgamer.biz. Retrieved 2024-04-04.
  20. ↑ "Saudi Arabia Becomes Largest Outside Shareholder of Nintendo". Bloomberg.com. 2023-02-17. Retrieved 2024-04-04.
  21. 1 2 3 4 5 6 Sertin, Carla (2023-11-21). "Savvy Games has $38 billion to build a Saudi gaming sector. Here's how they plan to do it". WIRED Middle East. Retrieved 2024-04-04.
  22. ↑ "Saudi Arabia has reduced its stake in Nintendo". VGC. 2024-10-08. Retrieved 2024-10-08.
  23. ↑ Obedkov, Evgeny (2023-06-26). "Saudi Arabia increses its stake in South Korean game publisher Nexon to 10%". Game World Observer. Retrieved 2024-04-04.
  24. ↑ Takahashi, Dean (2023-09-09). "Savvy Games Group's strategy to become a force in gaming | Brian Ward interview". VentureBeat. Retrieved 2024-04-04.
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