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What Saudi Arabia’s role in the Electronic Arts buyout tells us about ‘game-washing’

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What Saudi Arabia’s role in the Electronic Arts buyout tells us about image, power and ‘game-washing

Jacqueline Burgess, University of the Sunshine Coast

Video game publisher Electronic Arts (EA), one of the biggest video game companies in the world behind games such as The Sims and Battlefield, has been sold to a consortium of buyers for US$55 billion (about A$83 billion). It is potentially the largest-ever buyout funded by private equity firms. Not AI, nor mining or banking, but video games.

The members of the consortium include: Silver Lake Partners, an American private global equity firm focusing on technology; the Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund; and the investment firm Affinity Partners, run by Jared Kushner, son-in-law of American President Donald Trump.

The consortium will purchase all of the publicly traded company’s shares, making it private. But while the consortium and EA’s shareholders will likely be celebrating – each share was valued at US$210, representing a 25% premium – it’s not all good news.

PIF acquiring EA raises concerns about possible “game-washing”, and less than ideal future business practices.

EA’s poor reputation

Video games are big business. The global video game industry is worth more than the film and music industries combined. But why would these buyers specifically want to buy EA, an entity that has won The Worst Company in America award twice?

It has been criticised for alleged poor labour practices, a focus on online gaming (even when it’s not ideal, such as in single-player stories), and a history of acquiring popular game studios and franchises and running them into the ground.

Players of some of EA’s most beloved franchises, such as The Sims, Dragon Age and Star Wars Battlefront II, believe the games have been negatively impacted due to the company meddling in production, and wanting to focus on online play and micro-transactions.

Microtransactions are small amounts of money paid to access, or potentially access, in-game items or currency. Over time, they can add up to a lot of money, and have even been linked to the creation of problem gambling behaviours. Unsurprisingly, they are not popular among players.

Current global economic stresses have affected video games and other high-tech industries. The development costs of a video game can be hundreds of millions of dollars. EA has reacted to its slowing growth by cancelling games and laying-off close to 2,000 workers since 2023. So a US$55 billion offer probably looked enticing.

Saudi Arabia’s investment spree

In recent years, the Saudi wealth fund has been on an entertainment investment splurge. Before this latest acquisition, PIF invested heavily in both golf and tennis.

It is a sponsor and official naming rights partner of both the Women’s Tennis Association rankings and the Association of Tennis Professionals rankings.

The wealth fund also helped establish the LIV Golf tour in 2022, in opposition to the Professional Golf Association (PGA). By offering huge sums of money, it was able to attract players away from the PGA. One player was reportedly offered US$125 million (A$189 million). This tactic worked; a merger was announced between LIV, the DPA (European golf tour) and the PGA (North American golf tour) in 2023, with PIF as the main funder.

PIF, via its subsidiaries, has also been acquiring stakes in other video game companies. For example, it is one of the largest shareholders in Nintendo, the developer behind Mario, and purchased Niantic (the company behind Pokémon Go) earlier this year for US$3.5 billion (A$5.3 billion)

Why does PIF want video game companies?

Live sport and video games have a few things in common: they are fun, engaging and entertaining. And being known for entertainment is good PR for a country that has been accused of human rights abuses.

PIF’s investment in sport has been called “sportswashing”: using an association with sport to counteract bad publicity and a tarnished moral reputation. Video games, with their interactivity and entertainment value, represent an opportunity for game-washing.

The fact EA owns many sports games’ franchises would also be a bonus, potentially allowing for further video game and sport collaboration. And the fact the video game industry is projected to keep growing globally makes it a good investment for an oil-rich nation looking to economically diversify.

Beyond game-washing concerns, we also need to pay attention to the type of buyout happening here. This is a “leveraged” buyout, meaning part of the purchase price – in this case US$20 billion (A$30 billion) – is funded as debt taken on by the company. So once the acquisition is complete, EA will have US$20 billion of new debt.

With all that new debt to service, it would only be natural to have concerns about more lay-offs, cost-cutting and increasing monetisation via strategies such as microtransactions. Ultimately, this would result in a poorer experience for players. It seems the more things change, the more they stay the same.The Conversation

Jacqueline Burgess, Lecturer in International Business, University of the Sunshine Coast

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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SoftBank plans acquisition of DigitalBridge for AI expansion

SoftBank advances towards acquiring DigitalBridge to boost AI infrastructure amid soaring global data center demand

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SoftBank advances towards acquiring DigitalBridge to boost AI infrastructure amid soaring global data center demand

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In Short:
– SoftBank may acquire DigitalBridge to enhance its AI infrastructure amid rising global data centre demand.
– The deal could control $108 billion in digital assets, with financial details yet to be disclosed.

SoftBank Group is reportedly in advanced talks to acquire DigitalBridge Group, a move that would dramatically expand the Japanese conglomerate’s control over critical AI infrastructure as global demand for data centres accelerates. The potential deal, which could be announced within days, would give SoftBank exposure to roughly $108 billion in digital infrastructure assets, including data centres, cell towers and fibre networks. While financial terms remain undisclosed, the talks are said to be at an advanced stage.

The acquisition fits squarely into founder Masayoshi Son’s renewed bet on artificial intelligence and computing capacity. DigitalBridge manages investments in major data centre operators such as Vantage Data Centers, Switch, DataBank and AtlasEdge, placing SoftBank at the centre of the infrastructure powering next-generation AI. The company is also a key participant in Stargate, a $500 billion private-sector AI initiative announced earlier this year, and recently agreed to buy ABB’s robotics division as part of its broader push into physical AI.

Intensifying competition

Markets have reacted strongly to the prospect of the deal, with DigitalBridge shares surging as much as 47% after the initial reports emerged. The rally highlights intensifying competition for data centre assets, as AI drives unprecedented demand for computing power. McKinsey estimates AI-related infrastructure spending could reach $6.7 trillion by 2030, while Goldman Sachs forecasts global data centre power consumption will rise 175% from 2023 levels by the end of the decade. If completed, the acquisition would mark SoftBank’s return to direct ownership of a major digital infrastructure platform at a pivotal moment in the AI race.


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Italy orders Meta to open WhatsApp to AI competitors

Italy orders Meta to allow rival AI chatbots on WhatsApp amid regulatory battle over market dominance

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Italy orders Meta to allow rival AI chatbots on WhatsApp amid regulatory battle over market dominance

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In Short:
– Italy’s antitrust authority requires Meta to allow access to rival AI chatbots on WhatsApp during an investigation.
– Meta plans to appeal the ruling, claiming it disrupts their system and questioning WhatsApp’s role as an AI service platform.

Italy’s antitrust authority has ordered Meta to allow competing AI chatbots access to WhatsApp, suspending rules that blocked rivals. The decision comes amid concerns that Meta’s policies could limit competition and harm consumers in the rapidly growing AI services market. Meta plans to appeal, calling the ruling “fundamentally flawed” and arguing that WhatsApp wasn’t designed to support third-party AI chatbots.

The Italian Competition Authority began investigating Meta after its March 2025 launch of Meta AI on WhatsApp, later expanding the probe to cover updated business terms that excluded rival AI providers, such as ChatGPT, Microsoft Copilot, and Perplexity. The European Commission has launched a parallel investigation, highlighting growing regulatory scrutiny on tech giants in Europe.

Europe’s stricter stance on Big Tech has sparked pushback from the industry and political figures in the U.S., including former President Donald Trump. Meta maintains that its Business API restrictions still allow AI for customer support and order tracking, but says general-purpose chatbot distribution falls outside its intended use.


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China’s maglev breakthrough hits 700 km/h in seconds, reshaping the future of transport

China sets world record with maglev train hitting 700 km/h in just two seconds, revolutionising ultra-high-speed transport

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China sets world record with maglev train hitting 700 km/h in just two seconds, revolutionising ultra-high-speed transport

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In Short:
– Chinese researchers set a world record, accelerating a test vehicle to 700 km/h in two seconds.
– This milestone positions China as a leader in ultra-high-speed maglev technology and future transport developments.

China has set a new world record in magnetic levitation technology after accelerating a ton-class superconducting maglev test vehicle to 700 kilometres per hour in just two seconds. The achievement, reported by state broadcaster CCTV, marks the fastest acceleration ever recorded for an electric maglev system and cements China’s position at the forefront of ultra-high-speed transport innovation.

The test was conducted by researchers at the National University of Defense Technology on a 400-metre track, where footage showed the vehicle flashing across the rail-like structure in a blur, leaving a misty trail behind it. The breakthrough follows more than a decade of research tackling complex challenges such as ultra-high-speed electromagnetic propulsion, electric suspension guidance systems, and high-field superconducting magnets, all of which are critical to stable travel at extreme speeds.

Hyperloop technology

Beyond headline-grabbing velocity, the milestone opens the door to future transport systems, including vacuum-tube maglev networks, commonly referred to as hyperloop technology. Scientists say the same advancements could also be applied to aerospace launch assistance, electromagnetic launch systems, and advanced experimental testing. According to Professor Li Jie from the National University of Defense Technology, the successful trial will significantly accelerate China’s research into frontier technologies, with future work focusing on pipeline-based high-speed transport and aerospace equipment testing.

While China now leads in superconducting maglev acceleration, global competition remains fierce. Japan still holds the record for the fastest manned train, with its L0 Series maglev reaching 603 kilometres per hour during testing in 2015. China, however, operates the world’s only commercial maglev service — the Shanghai Maglev — which currently runs at 300 kilometres per hour after its top speed was reduced from 431 kilometres per hour in 2021.

The December test builds on earlier progress made this year, including a 1.1-ton test sled that reached 650 kilometres per hour in seven seconds over a 600-metre track in June 2025. Together, these developments signal rapid momentum in China’s push toward next-generation transport systems that could redefine how people and payloads move across the planet.


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