Saudi Arabia buys EA: What does it mean for gamers?

Going private allows the gaming giant to release more stylistic and innovative titles to appease players

The Electronic Arts office and studio complex, in Burnaby, Canada, comes complete with a soccer pitch. AP

Electronic Arts, the company behind video games such as Fifa, The Sims and Battlefield, is about to change hands in one of the biggest deals in gaming history. EA has been bought out in a $55 billion deal led by Saudi Arabia’s Public Investment Fund, private equity firm Silver Lake and Jared Kushner’s Affinity Partners.

For EA, the timing is crucial. The company has been dealing with weaker sales forecasts and internal shake-ups, and some fans have questioned the strength of its coming releases. Going private could give EA more freedom to take risks, whether that’s pushing into AI, doubling down on live-service titles or developing bigger next-gen games without the constant pressure of quarterly earnings.

For Saudi Arabia’s PIF, the deal is part of a bigger plan to make gaming and digital entertainment a key part of its future. In recent years, it has poured billions into game studios, esports and gaming infrastructure, showing that gaming isn’t just a side project, but a major focus.

The acquisition is also the second biggest in the history of gaming, only second to Microsoft acquiring Activision Blizzard in 2023 for $75.4 billion.

So, what does this monumental change mean for EA and the players who enjoy its games?

What is Electronic Arts?

The sandbox-style Sims is one of EA's best-selling PC franchises. AP Photo

Founded in 1982 in Silicon Valley, EA quickly grew into one of the world’s most influential video game publishers. Known for its early role in promoting developers as “software artists”, the company shaped the modern gaming industry by bringing creativity into the mainstream.

Among its biggest successes are the Fifa series, recently rebranded as EA Sports FC, which has become the world’s best-selling sports video game, and Madden NFL, a staple in the US market. Beyond sports, EA is behind The Sims, one of the best-selling PC franchises, and Battlefield, a long-running first-person shooter series. The company also publishes Apex Legends, a battle royale title that has maintained a strong global player base since its surprise launch in 2019.

EA’s strategy has often been to combine major licensing agreements with the NFL, Fifa and other sports bodies, leveraging recurring revenue models through in-game purchases and live services. This approach has made it one of the most profitable companies in gaming, with billions in annual revenue and a footprint spanning consoles, PCs and mobile platforms.

Learning from EA’s past pitfalls

EA's Star Wars Battlefront II was at the centre of controversy for its over-reliance on loot box mechanics to gain advantages in the game. AP Photo

EA’s storied history as one of gaming’s biggest publishers and developers of popular video games is well known and mostly admired. However, it has lost segments of fans at times due to the blinding pursuit of profit over quality.

Despite its success, EA has long been criticised for prioritising short-term revenue over player satisfaction, particularly through its employment of annualised sports titles, microtransactions and aggressive monetisation practices. What was once a great innovator in the field has more recently become a machine that churns out familiar products with little to no improvements.

These strategies have damaged the company’s reputation and sparked regulatory scrutiny. High-profile missteps such as the launch of Star Wars Battlefront II – where loot box mechanics (random paid rewards tied to gameplay progression) triggered global pushback – serve as reminders of the risks of over-reliance on exploitative business models.

Meanwhile, a history of acquiring and shuttering smaller studios has only reinforced perceptions that EA stifles innovation in pursuit of predictable returns.

For the new ownership group, avoiding these traps will be critical. PIF and its partners are entering at a time when gaming audiences are both more global and more perceptive. Sustaining player loyalty requires balancing profitability with credibility, offering depth and creativity rather than iterative updates.

Advantages of private ownership

An immediate benefit of taking EA private is freedom from the relentless scrutiny of quarterly earnings. As a public company, EA was under constant pressure to deliver revenue, which led management to double down on annual releases and microtransactions.

Private ownership allows for longer investment horizons. Projects that may take five to seven years, such as ambitious new IPs or advanced AI-driven game engines, can be nurtured without fear of investor backlash.

Being privately owned could also give EA’s new backers more freedom to spend money where they see big opportunities. That might mean investing heavily in cloud gaming, esports, or new ways of telling stories in games – without worrying about short-term profit reports. In theory, this set-up fits the games industry well, since hit franchises can last for decades if handled with care.

Private ownership provides the chance to reset. EA has struggled with perceptions of crunch culture and creative stagnation, issues that have driven talent turnover in recent years. A shift in ownership could allow new leadership models, employee incentives and development practices to take root.

Outlook for the future

The $55 billion buyout is not just a financial transaction, but also a strategic opportunity. By avoiding the mistakes of EA’s past and leveraging the advantages of private ownership, the new investors could transform the company into a more innovative, globally resonant force in gaming.

EA Sports FC 26 is one of the gaming company's most popular titles. EA Sports

Rather than being the company known for exploiting its adoring fans, EA and its many games can become deeper and more stylistic. Take EA Sports FC as an example. Although popular, the games have had little to no discernible improvements over the years. Fans have complained that each iteration feels like a repackaged version of the one prior.

Under new ownership, EA should hope to shed this image and regain the stellar reputation it once held as a true innovator in the gaming world.