Why is Saudi Arabia's oil money targeting 'esports' and what are the risks?
It has been reported that Saudi Arabia has begun to enter the global industry ``gaming'', which is said to have grown to a scale of 187 billion dollars (approximately 27.5 trillion yen) as of 2023. Reporter Lewis Gordon of the news media The Verge talks about the current situation in Saudi Arabia, which has repeatedly acquired companies and made investments, and it is rumored that Crown Prince Mohammed bin Salman will eventually become the most powerful ``authorized gamer'' in the world. I'm explaining.
Saudi Arabia's plan to become the crown prince of gaming - The Verge
Saudi Arabia has been supporting the soccer, professional wrestling, and golf industries for some time, and in soccer in particular, there have been many news reports that the country has recruited several famous players to Saudi professional teams. Saudi Arabia's financial support is not limited to sports, but in recent years has expanded to include culture and art such as movies and games.
Among them, Saudi Arabian e-sports company Savvy Games Group acquired mobile game developer Scopely for $4.9 billion (approximately 720 billion yen), and also acquired e-sports organizations ESL and Faceit for $1.5 billion (approximately 220 billion yen). We are expanding our power through acquisitions.
Behind these moves is a sense of crisis over Saudi Arabia's dependence on oil, which accounts for 40-50% of its annual GDP. Some believe that for this purpose, it is necessary to diversify the industry to take control of e-sports and, by extension, the gaming industry.
According to Brian Ward, CEO of Savvy Games Group, Saudi Arabia aims to become a gaming 'powerhouse', transforming the country into a hub for games development and esports, and in the process perhaps It is said that he intends to make the prince the most powerful official ``gamer'' in the entire world.
The investment is part of Saudi Arabia's economic diversification and social transformation plan, and is seen as an effort to maintain the kingdom's economy and bring wealth to the country in a world rapidly transitioning away from fossil fuels. Says. It seems that Prince Salman is particularly enthusiastic about such investments.
However, according to reporter Gordon, investing in esports is a 'high-risk bet.' This is because, although e-sports is increasing in popularity year by year, it lacks profitability and has not been able to create a stable market like sports.
On the other hand, those promoting e-sports are struggling with a lack of funds, so there is no reason to turn down large investments. It would be fine if it was a pure investment, but reporter Gordon reported on a case in which the Saudi government sentenced a man to death based on his political activities on Twitter and YouTube, and on Saudi Arabia's alleged involvement in the murder of journalist Jamal Khashoggi. Based on case studies, we are concerned that countries that should be concerned about are expanding their power through financial power.
Gordon said: ``Saudi Arabia's industrial diversification is primarily about power: maintaining power at home, expanding power abroad, and further enriching a dynasty with unlimited wealth.'' ” he pointed out.
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