when Microsoft revealed plans to acquire Activision-Blizzard in 2022 for over $68 billion, the industry was stunned. This announcement echoed the recent significant shifts in the sector: prominent publishers known for iconic sports titles like Madden and EA Sports FC (formerly FIFA) have opted for a private acquisition often dubbed “the largest leveraged buyout in history.” This $55 billion deal is backed by a trio of investors resembling a final boss lineup on paper.
Introducing Player 1: Saudi Arabia’s Sovereign Wealth Fund. The Saudi royal family has made substantial investments in gaming over the years and leads an astute gaming group headed by Crown Prince Mohammed bin Salman, known for his controversial record with domestic issues and the assassination of journalist Jamal Khashoggi. Player 2: Affinity Partners, an investment firm led by Jared Kushner, the son-in-law of the current U.S. president. Player 3: Silver Lake, a notorious private equity firm, which owns a significant stake in game engine developer Unity. Stephen Totilo from Game File refers to the Affinity Partners logo as a mirror image, reminiscent of the Evil Corporation in the Assassin’s Creed series. It feels almost surreal.
You might be curious about Saudi Arabia’s extensive investment in gaming. They have heavily funded eSports and even launched the ESports World Cup in Riyadh. They’ve acquired the manufacturer of Monopoly GO and purchased shares in numerous gaming companies, including Pokémon GO and Nintendo. (Game file provides a thorough overview of Saudi capital in the gaming industry.) The motivation behind these investments parallels their funding of sports, media, and lately, comedy. It serves as a strategy for whitewashing perspectives, or in this instance, game-washing, showcasing the cultural clout of video games.
Regarding Affinity Partners and Silver Lake: There’s potential for profit. EA reported over $2 billion in profit last fiscal year, primarily from sports franchises. EA also owns The Sims and Battlefield, two franchises that could yield significant returns. Previously, EA was a more diversified publisher, with a rich portfolio including Dragon Age and Titanfall. However, under current CEO Andrew Wilson, their focus has shifted mainly to the most lucrative sports franchises.
Critics of this acquisition often highlight Saudi Arabia’s involvement. Thousands of developers and millions of gamers within EA feel unsettled (especially since The Sims has a significant LGBTQ+ following). Opinions among business journalists and analysts vary. Kotaku’s Ethan Gach discussed with several of them in this article. One notable quote from NYU’s Joost Van Dreunen states, “The center exhibits an irrational financial logic concerning power, fame, and the implications of Saudi Arabia’s role in American entertainment.”
Business analysts pointed out that the acquisition places EA under a staggering $20 billion in debt, as reported by Bloomberg. Questions arise about how the new EA ownership intends to manage this debt. Will there be more layoffs or budget cuts? Will they reduce profits from popular features like Ultimate Team Mode in EA Sports FC? Or might they abandon the flagging mobile gaming sector? For both players and EA employees, returning to normal business operations seems uncertain.
Electronic Arts is not the industry’s favorite publisher, and it doesn’t have the best reputation. However, it’s vital to remember the thousands of dedicated employees behind the scenes. Despite EA’s business practices that may frustrate gamers, it’s essential to consider the talents and projects of these people across the gaming industry. Even without oppressive ownership, such private equity takeovers often harm both employee morale and the industry’s overall health. Fans of FIFA, for instance, might reflect on the financial struggles of clubs like Manchester United post-acquisition, plagued by immense debt.
Nonetheless, one individual relishing this deal is CEO Andrew Wilson. “This moment embodies your creativity, innovation, and passion. Everything we’ve accomplished, and everything ahead, is for you,” he proclaimed in a public statement. “Our values and commitment to players and fans globally remain unchanged. We will maintain operational excellence and rigor, enabling team creativity, accelerating innovation, and pursuing transformative opportunities to secure EA’s leadership in the future of entertainment.”
Interestingly, Wilson holds tens of millions of EA shares, currently valued at £157 should the acquisition go through. Doesn’t that warm even the most cynical of hearts?
What to play
It’s fascinating that two stunning, highly-priced historical fiction games set in Japan have launched within just six months of each other. Yet, here we are.
The Ghost of Yotei releases tomorrow, featuring a female warrior on a quest for revenge across the most breathtaking landscapes ever created in gaming, echoing the essence of Assassin’s Creed. I enjoyed Shadows earlier this year; its beauty and performance are undeniable. However, I find Yotei even more enthralling. It’s far more engaging without reliance on maps or magical visions for locating enemies, instead compelling players to follow the sounds of birds, foxes, and those in need. The minimalistic mechanics, like igniting campfires or crafting sumi-e art, delight. Combat feels exhilarating, embodying an old-school vibe similar to Soul Calibur during duels. I’m pleasantly surprised by how much I appreciate this game, considering Ghost of Tsushima felt less fresh five years ago. Our protagonist, Atsu, seems far less tormented than Ghost of Tsushima’s protagonist, Jin.
Available on: PlayStation 5
Estimated playtime: Over 30 hours
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What to read
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IGN Interview with Rockstar co-founder Dan Hauser, who recently appeared at LA Comic Con. He’s known for being elusive and shared that his favorite title is Red Dead Redemption 2, also expressing regret over not following through on the boarding school satire.
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Insomniac Games’ Wolverine has finally revealed its gameplay trailer. Given how well Spider-Man was adapted, I’m optimistic about this release slated for next year. As a fan of Housemarque’s thrilling sci-fi title Returnal, I eagerly watched the follow-up footage for Saros, set for a March 2026 launch.
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Rog Xbox Ally is a poorly named yet highly anticipated handheld Xbox-compatible device priced at £500/£800. Microsoft has confirmed it, placing it in competition with the Steam Deck.
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In Nintendo news, US President Doug Bowser has announced his impending retirement. He will be succeeded by Devon Pritchard, who has served at Nintendo for 19 years. Rumor has it that she may change her name to Devonganon. Moreover, there’s an upcoming pop-up store of Japanese department stores set to open in London later this month, with fans gaining access in March.
What to click
Question block
This week, reader Kevin asks:
“At age 68, I’ve developed an interest in gaming. I purchased a PS5 Pro and am currently waiting for its arrival. Could you provide a guide on how to use the controller?”
Welcome to the world of gaming, Kevin! It’s fantastic to hear someone is taking the plunge into gaming, especially if it involves pressing buttons!
For mastering the PS5 controller, I highly recommend Astro’s Playroom. It’s a delightful and engaging experience featuring small robots living within PlayStation. This short yet enjoyable game serves as an excellent tutorial for the unique functionalities of the PS5 controller and has even assisted my two sons in navigating more complex controls. If you find it enjoyable, be sure to check out the full-length sequel, expected to be a contender for Game of the Year in 2024.
If you have a question for the “Question Block” or any comments about the newsletter, feel free to reply or reach out to us at butingbuttons@theguardian.com.
Source: www.theguardian.com
