What Next | Daily News and Analysis TBD | Saudi Arabia Gets into EA’s Games
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Oct 5, 2025 In this engaging discussion, Jason Schreier, a seasoned video game reporter for Bloomberg, delves into the recent $55 billion acquisition of Electronic Arts by a consortium led by Saudi Arabia’s sovereign wealth fund and Jared Kushner. He highlights the concerns around employee layoffs and the significance of the deal within the gaming industry. Jason also explores the shift towards live service models, the implications of taking EA private, and Saudi Arabia's interest in diversifying its economy through gaming, all while reflecting on the future of game types.
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Saudi Fund Sees Gaming As Strategic Diversification
- The Saudi Public Investment Fund (PIF) is the lead investor in the EA buyout, marking a major push into gaming tied to Vision 2030.
- Jason Schreier says Saudis view gaming as a predictable, non‑oil revenue stream and have been building investments across the industry.
EA's Size Masks A Divided Reputation
- EA is one of the longest‑running and largest game companies, maker of Madden, The Sims, Battlefield, and Apex Legends.
- Schreier notes EA's public reputation is mixed: mainstream players buy titles, hardcore fans often criticize EA's profit-driven moves.
Live Service Powers Most Of EA's Revenue
- Around 75% of EA's revenue now comes from live‑service monetization rather than one‑time sales.
- Schreier argues live service offers more predictable recurring revenue than hit‑driven new releases.