Saudi Arabia’s Public Investment Fund is reportedly attempting a massive $55 billion acquisition of Electronic Arts, a move that has quickly drawn significant criticism from game developers and calls for close examination by regulatory bodies. The deal’s potential impact on jobs, creative freedom, and studio stability is a primary concern.
Key Takeaways
- Game developers, organized under the United Videogame Workers-CWA union, are urging regulators to scrutinize the potential acquisition of Electronic Arts by Saudi Arabia.
- Concerns include job security, preservation of creative freedom, and accountability to workers, especially given EA’s profitability and the industry’s recent layoffs.
- Specific studios like BioWare are seen as potentially at risk, with worries about progressive content clashing with Saudi Arabia’s social policies.
- US senators have also expressed "profound concern" over national security risks, though regulatory action may be challenging.
Developer Concerns Over Job Security and Creative Freedom
The United Videogame Workers-CWA union has issued a strong statement urging regulators and lawmakers to ensure that any acquisition of Electronic Arts by Saudi Arabia’s Public Investment Fund and private equity firms prioritizes job protection, preserves creative freedom, and maintains accountability to the workforce. The union highlighted that EA is a highly profitable company, generating billions in revenue and profit annually, with its success driven entirely by its employees.
"We, the very people who will be jeopardized as a result of this deal, were not represented at all when this buyout was negotiated or discussed," the union stated, emphasizing that job losses or studio closures would be a choice made to benefit investors rather than strengthen the company.
Potential Impact on Studios and Content
Concerns are particularly acute regarding the fate of EA studios that might be deemed "less profitable." The union pointed to the tens of thousands of layoffs that have already occurred across the gaming industry, even at successful companies. BioWare, a storied RPG developer, has been frequently mentioned as a studio potentially at risk. Beyond financial considerations, there are worries that the studio’s progressive narrative content, which often includes LGBTQ+ themes, might face challenges in a country like Saudi Arabia, where same-sex relationships are criminalized.
Regulatory Scrutiny and Calls for Action
The union’s call for scrutiny follows similar demands from US senators Richard Blumenthal and Elizabeth Warren, who have voiced "profound concern" about potential national security implications. The United Videogame Workers have also launched a petition urging the US Federal Trade Commission (FTC) to "scrutinize this deal closely."
Despite these concerns, the article notes that regulatory action might be difficult, especially with figures like Jared Kushner reportedly involved in facilitating the deal. The union acknowledges that regulatory action alone is insufficient and calls for continued worker organizing to ensure game developers have a voice in the industry’s future.
