Saudi's Savvy Games Group Eyes Global Expansion with Nintendo and Capcom
Saudi Arabia's gaming ambitions are taking a significant leap forward as the Savvy Games Group seeks to establish a deeper partnership with Japanese gaming giants Nintendo and Capcom. In a strategic move, Savvy Games Group, backed by Saudi Arabia's Public Investment Fund (PIF), aims to explore investment opportunities and game localization in the Middle East.
A Vision for the Future
During a recent meeting in Tokyo, Savvy Games Group's vice chair, Prince Faisal bin Bandar bin Sultan Al Saud, extended an invitation to Nintendo, Bandai, Capcom, and Konami to consider establishing regional offices in the Middle East. Currently, these companies manage their Middle Eastern operations from Europe. Prince Faisal's vision is to create a global hub for gaming and esports within the Kingdom, leveraging the substantial resources and strategic location of Saudi Arabia.
“Game development is our long-term goal. We want to build a global hub for gaming and esports," said Prince Faisal, emphasising the Kingdom's commitment to becoming a central player in the global gaming industry.
Localising the Middle East
A critical aspect of Savvy's strategy is the localization of foreign games. Prince Faisal highlighted the potential for collaboration with Japanese companies to localise their intellectual properties for the Middle Eastern market. “One of the main areas is how do we collaborate on localization products, and help Japanese intellectual properties grow in a region that right now is underserved because very little is localised," he noted.
By establishing a robust local gaming industry, Savvy Games Group plans to hire and train young Saudi engineers, providing them with opportunities to contribute to game development and the broader tech ecosystem.
Strategic Investments and Acquisitions
The PIF has allocated a staggering 142 billion riyals ($37.9 billion) to Savvy Games Group. The fund currently holds 8% of Nintendo and 6% of Capcom, as reported by Nikkei. Additionally, the PIF acquired mobile game developer Scopely for $4.9 billion last year, along with two esports event companies for $1.5 billion in 2022.
With 75% of its 142 billion riyal budget still unspent, Savvy Games Group is poised for further acquisitions. The company is particularly interested in acquiring "genre-leading titles" and prioritising mergers and acquisitions to strengthen its portfolio.
Focus on Esports and Growth
One of Savvy's primary focuses is its esports unit. The company aims to enhance its esports capabilities by prioritising technical opportunities, including digital platforms and fan engagement tools. If the planned partnerships with Japanese companies are successful, Savvy's in-house development team could grow from 80 to 200 members by early 2026.
The acquisition of Scopely and the successful launch of Monopoly GO have positioned Savvy Games Group as a significant player in the gaming industry. With ambitions to develop its own games for third-party consoles, Savvy is on the path to becoming a major force in the MENA region, potentially rivalling established giants like Nintendo and Capcom.
As Saudi Arabia continues to invest in the gaming and esports sectors, the establishment of regional offices by Nintendo, Capcom, and others could mark the beginning of a new era for the Middle Eastern gaming industry, fostering innovation and growth in the region.