Saudi Arabia Shifts Gaming Strategy with Focus on Japanese IPs

Saudi Arabia's Public Investment Fund (PIF) is shifting its gaming strategy. Instead of merely investing, it aims to collaborate more closely with Japanese gaming companies. This move is part of a broader plan to diversify the Saudi economy away from oil and into entertainment and intellectual property (IP).

PIF will transfer all its gaming assets to Savvy Games Group, a subsidiary, as early as 2025. This transfer signifies a move from passive investment to active partnership. Savvy has been in talks with Japanese companies about expanding into the Saudi and MENA markets.

Saudi Crown Prince Mohammed bin Salman, a fan of video games and anime, is leading this initiative. The PIF already owns significant stakes in major gaming companies like Nintendo and Capcom.

Savvy's $35 billion investment plan is central to this strategy. It includes building theme parks based on popular IPs like "Dragon Ball" and "Transformers."

Japanese gaming companies could benefit from this shift. The Islamic population in the Middle East offers a large, untapped market. Additionally, soaring game development costs could be offset by Saudi funding.

While some Japanese companies are cautious, others see Saudi Arabia as a potential gateway to Middle East expansion. Savvy's cooperative stance suggests aggressive takeovers are unlikely. Despite concerns about the effectiveness of some Saudi plans and geopolitical risks, the gaming industry is watching closely.