Saudi Arabia has long wanted to be seen as a global powerhouse in eSports, and it has been able to project some of this ambition abroad. In fact, Saudi Arabian eSports and gaming company Savvy Games Group sealed a landmark deal with Chinese tournament operator and eSports company VSPO.
Savvy agreed to invest $265 million in the Chinese eSports powerhouse and has effectively become the largest equity holder in the company. This is a tremendous achievement not just for the two companies separately, but also in terms of what it means for the eSports industries in Saudi Arabia and Chinese which are now hewing closer together.
While Savvy Games Group’s investment now makes it the largest equity holder, the exact percentage of owners is not immediately known due to ongoing discussions with authorities, who require the deal to be subject to typical closing conditions. VSPO is one of the most important eSports properties in the world, with a specific emphasis on China.
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VSPO’s Dominance in Asian eSports
VSPO, formerly known as VSPN, has long been a major player in the Asian eSports market. It runs some of the most well-known franchised competitions, including the King Pro League, the professional competition that serves as the foundation for the Honor of King top-tier competitive video gaming business.
VSPO works closely with Krafton, Garena, and Tencent, among others. The investment in VSPO is notable not just because of its significance in the Asian region, but also because it is part of Saudi Arabia’s Vision 2023 project, which includes considerable investment in eSports assets. The Savvy Gaming Group understood that investing locally was not the only option.
Saudi Arabia’s Goals for eSports Domination
The investment also comes at a time when there is a growing interest in eSports betting in Saudi Arabia, with the best betting site in Saudi Arabia currently accepting bets on the outcome of eSports events. Due to the concerted local efforts to popularize video gaming.
In Saudi Arabia, the rate of participation in professional video gaming has increased considerably. Gamers from the Kingdom are already competing in a number of notable events and video games in order to strengthen their position in the ecosystem. Saudi Arabia is eager to expand its local eSports market for a variety of reasons. For starters, the Kingdom wishes to be acknowledged as a peer in the field of video gaming, not least since Crown Prince Mohammed bin Salman Al Saud is a passionate eSports fan.
The young prince has seen eSports as a way to connect Saudi Arabia’s youth with the rest of the world and perhaps out of pride, he also wants to show the world that Saudi Arabians are some of the best and most fierce video gamers out there – he has a point. The Kingdom’s gamers are already proving themselves to be very talented gamers when it comes to titles such as PlayerUnknown’s Battlegrounds, FIFA, and Dota 2 among other competitions.
Saudi Arabia’s Ambition to Cultivate Gaming Talent
Saudi Arabia still has a lot of catching up to accomplish. MBS, the Crown Prince, is a Call of Duty enthusiast who aspires to see a Saudi Arabian club compete in the Call of Duty League, a franchised competition centered in North America. It’s currently claimed that any franchise entering the league would have to spend $50 million to guarantee a spot, which is a substantial sum to pay when everything is said and done.
Of course, in order to compete in the Call of Duty League, Saudi Arabia will first need to foster the appropriate talent. The investment in VSPO is just the beginning, with 2030 appearing like a good deadline for the kingdom to truly demonstrate its eSport prowess. Saudi Arabia is also considering another ambitious target, which it aims to fulfill within the next seven years.
For one thing, it hopes to persuade the global gaming industry that Saudi Arabia is a good place to set up local offices and hire local expertise. The Kingdom is adamant about attracting investment from Electronic Arts, Activision Blizzard, Ubisoft, and other worldwide gaming conglomerates. True, these firms have created some of the best eSports products, but they have also created some of the best video gaming experiences in general.
MBS hopes that his Kingdom can truly be a transformative power in the gaming and eSports sector relying on local talent to achieve this goal.
Final Thoughts
The investment deal between Savvy Games Group and VSPO marks a significant milestone for both the Chinese and Saudi Arabian eSports industries. VSPO’s dominance in the Asian eSports market and Savvy Gaming Group’s investment are a step forward for Saudi Arabia’s Vision 2023 project, which includes significant investment in eSports assets. The partnership comes at a time when there is a growing interest in eSports betting in Saudi Arabia, and the Kingdom is eager to expand its local eSports market and cultivate gaming talent to compete on a global level. It remains to be seen whether Saudi Arabia will achieve its ambitious goals, but with continued investment and dedication to the gaming and eSports industry, the Kingdom may well become a transformative power in this sector.
