Savvy Games Group Explained

Savvy Games Group
Type:Private
Industry:Video games
Hq Location:Riyadh, Saudi Arabia
Num Locations:69
Num Locations Year:2024
Num Employees:3,450
Num Employees Year:2024
Parent:Public Investment Fund

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]

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.

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]

Subsidiaries and stakes

Notable stakes

!Company!Location!Stake worth!Ownership stake!
NintendoKyoto, JapanN/A8.3%[19] [20]
Electronic ArtsRedwood City, California$2.98 billion9%
Take-Two InteractiveNew York City, New York$1.36 billionN/A
Embracer GroupKarlstad, Sweden$1.0 billion8.3%
NexonTokyo, Japan$883 million10.2%[21]
CapcomChūō-ku, Osaka, Japan$332 million5%[22]

Notes and References

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