| 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]
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]
| Nintendo | Kyoto, Japan | N/A | 8.3% | [19] [20] | |
| Electronic Arts | Redwood City, California | $2.98 billion | 9% | ||
| Take-Two Interactive | New York City, New York | $1.36 billion | N/A | ||
| Embracer Group | Karlstad, Sweden | $1.0 billion | 8.3% | ||
| Nexon | Tokyo, Japan | $883 million | 10.2% | [21] | |
| Capcom | Chūō-ku, Osaka, Japan | $332 million | 5% | [22] |