If you didn’t already know yet, SNK, a video game company that dates back to the early 80s, was bought by the MiSK Foundation. This is a Saudi company owned by the Crown Prince himself, Mohammed bin Salman. The purchase was made in 2020, but in small shares. The final purchase leading to the full ownership of SNK was made in 2022. Now, the big news is that they bought a share from CAP COM.
How much did they buy from Cap Com
Just to be clear, this is not a full buyout of Cap Com, because that’s just not possible. What they did do is they bought over 5% of the shares. They’re basically investors, but with that amount, they’re not going to be calling the shots. It’s just another business venture that they love to do when they plan on diversifying their country’s profit stream, other than oil.
After all, this isn’t the only Saudi company to be buying up video game companies. One of the other biggest gaming giants is EA. The company was bought by a Saudi Public Investment Firm for $55 million. That’s a lot of money, and it seems that more purchases may be made, so we’ll have to wait and see on that in the future.
Why are Saudi Arabian firms buying out video game companies?
Saudi Arabia has been actively investing in video game companies as part of its long-term national strategy known as Saudi Vision 2030. This plan aims to reduce the country’s dependence on oil by expanding into new industries such as entertainment, tourism, and technology. Gaming is seen as a fast-growing global market with strong revenue potential, making it an attractive sector for investment. By acquiring stakes in major gaming companies, Saudi Arabia is positioning itself to benefit from this growth while building a more diversified economy.
A significant portion of Saudi Arabia’s population is young, and gaming is one of their most popular forms of entertainment. Investing in video game companies aligns with local interests and helps create opportunities that resonate with younger generations. This makes the strategy both economically and socially relevant, as it supports industries that people are already passionate about. The crown prince himself is a gamer, so it all adds up as well.
Could this be bad for Cap Com?
Just as we stated, their stake doesn’t mean that they can push for creative control. MiSK doesn’t seem to want to get in on the creative side anyway. Their goal is to just make money, and with the recent success of Resident Evil 9 selling over 6 million units, that’s a perfect inspiration to just let the people making the games do as they please.
Why fix something that isn’t broken, but it is understandable why some people would be concerned. Saudi Arabia does have this tendency for censorship or whatever restrictions on content. So far, nothing has been an issue with the SNK games, so Cap Com fans need not worry.
