""All public AAA companies have overemphasized 'returning value to shareholders' over taking care of all stakeholder groups, including labor," he said. "Now, that will be shifted to keeping the company afloat amidst enormous debt payments and servicing [private equity] owners.""
""very much about aligning gaming and esports alongside entertainment and sports as key diversification pillars for the Saudi economy,""
""Games can open a Pandora's Box of consumer info and data collection, and I expect heavy US government scrutiny of the deal, both initially and ongoing," Cole said."
The transition from public to private ownership will redirect corporate pressures from maximizing shareholder returns toward keeping companies solvent while servicing substantial debt and private-equity obligations. The Saudi Public Investment Fund's involvement adds a significant strategic dimension tied to aligning gaming and esports with entertainment and sports as diversification pillars for the Saudi economy. EA's sports portfolio is especially attractive in the Middle East, where 33 percent of PC players and 44 percent of console players prefer sports games. Saudi stakes complement esports investments but may prompt US scrutiny over consumer data privacy and could risk content changes driven by social conservatism.
Read at Ars Technica
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