What EA’s Potential $50 Billion Buyout Could Mean for Players

A 50 billion USD deal! Yes, this is the figure currently being talked about on Wall Street as Electronic Arts, one of the most influential publishers in gaming, nears a deal to go private. Reporting suggests that a group of investors, including private equity shareholders, Saudi Arabia’s Public Investment Fund (PIF), and Jared Kushner’s Affinity Partners, is assembling the capital to take EA private entirely.

If this deal is successful, it will be one of the largest buyouts in gaming history, especially after the buyout of Activision Blizzard by Microsoft. Here is everything you need to know about the recent EA multi-billion dollar deal. We will also talk about how it can affect the future of some of the company's biggest games, such as the recently released EA FC 26.

EA 50 Billion Dollar Deal: What Does it Mean for Gamers?

Regarding the buyout of Electronic Arts by Saudi investments, a lot of players might ask initially: What does this mean for games? At a surface level, the idea of EA going private could be interpreted as a good sign. Maybe, without the regular demands of shareholders who want quick profits every quarter, EA might adopt a more measured pace. Developers might have more time to work on creating the next Battlefield, Dragon Age, etc.

The market may excuse a long development time, which has previously been the reason that games were released before they were ready, simply because of the time frame for reporting to shareholders. Without those expectations, there may be more time spent on free-play development than just simply meeting the annual deadlines.

But also, some things to think about. A deal of this size means that Electronic Arts will, as is common nowadays, be directly answering to investors with likely different priorities. One of the main groups or individuals in this deal, the Saudi Arabia Public Investment Fund, has invested heavily in gaming in recent years. Purchases in this arena have already included significant stakes in Nintendo, Capcom, Nexon, and total ownership of Nexon, the studio behind King of Fighters.

Most investment in this arena has been a part of the country's Vision 2030 plan, which aims to diversify the economy by introducing industries like entertainment and gaming, other than reliance on oil and gas.

EA Can Invest Now in Big-Budget Titles

From a commercial standpoint, having investors with such deep pockets could give EA a greater financial cushion to plan for the future. Here onward, EA at least won't see the funding crunch, especially for big titles, and the company could continue to work in areas where there is scope for growth, including esports, subscriptions, and mobile gaming. Not to mention, in recent times, EA has shown heavy interest in the mobile gaming industry. EA FC Mobile is one of its most well-known products that has captured the attention of millions.

Electronic Arts Future from Hereon

For casual gamers like us, the EA Saudi Arabia deal will have a minimal short-term impact. Annual sports games will continue, The Sims 5 is still expected, and Dragon Age: Dreadwolf is on the way. But the long-term implications of EA being controlled by a new set of private investors could have a slow but consistent impact on how the company runs.

Additionally, this buyout follows a larger trend of consolidation in the gaming industry. Microsoft purchased Activision Blizzard, Sony is further building its portfolio with exclusives, and Tencent has a stake in many studios. Even Krafton is investing a lot in indie studios. Now, the EA 50 billion dollar deal joins the list.