The $55 Billion Earthquake: Saudi Arabia’s PIF Completes EA Acquisition as EU Gives Final Approval
July 24, 2026 — In what is now the largest private leveraged buyout in history, the European Union has formally approved Saudi Arabia’s $55 billion acquisition of Electronic Arts. The gaming industry will never be the same.
If you had told a gamer ten years ago that one of the biggest publishers in the world — the company behind FIFA (now EA Sports FC), The Sims, Battlefield, Mass Effect, and Dragon Age — would be owned by a Middle Eastern sovereign wealth fund, they probably would have laughed. But here we are. The European Commission announced its decision this week, clearing the final major regulatory hurdle for a deal that has been working its way through approval processes since stakeholders signed off in December 2025. The acquisition, spearheaded by Saudi Arabia’s Public Investment Fund (PIF) alongside private equity giant Silver Lake and investment firm Affinity Partners — the latter led by Jared Kushner, son-in-law of former US President Donald Trump — is now poised to close.
The EU’s decision came after its standard merger review procedure concluded that the buyout would not raise competition concerns. But while regulators may be satisfied, the gaming community, industry workers, and human rights organisations are anything but.
Why This Deal Matters: The Numbers Behind the Buyout
Let’s break down what $55 billion actually means in context. This is not just the biggest gaming acquisition ever — it is the largest private leveraged buyout in any industry, ever. The term “leveraged” is key here: the acquisition is being financed primarily through borrowed debt, meaning EA itself will essentially be saddled with the cost of its own purchase. This structure has raised concerns among financial analysts about the long-term stability of EA’s operations, as debt servicing could pressure the publisher to prioritise short-term revenue over creative risk-taking.
To put the scale in perspective:
- Microsoft acquired Activision Blizzard for $69 billion in 2023 — but that was a corporate strategic acquisition, not a leveraged buyout.
- Take-Two acquired Zynga for $12.7 billion in 2022 — less than a quarter of the EA deal.
- Embracer Group’s buying spree throughout the early 2020s collectively totaled under $10 billion.
The PIF’s acquisition of EA dwarfs all of these. And it signals a fundamental shift in who controls the games we play.
Sportswashing Concerns and Industry Backlash
Saudi Arabia’s aggressive expansion into the gaming industry has been a subject of intense controversy for years. The country’s Public Investment Fund has spent billions acquiring stakes in companies across the sector — from significant shares in Nintendo and Take-Two to full ownership of Savvy Games Group. The EA acquisition represents the crown jewel of this strategy.
Human rights organisations have been vocal in their opposition. Human Rights Watch has explicitly characterised Saudi Arabia’s gaming investments as sportswashing — a deliberate effort to rehabilitate the country’s international image following years of scrutiny over its human rights record, including the killing of journalist Jamal Khashoggi in 2018, the ongoing war in Yemen, and the suppression of women’s rights and LGBTQ+ communities.
“Saudi Arabia’s financial hoovering of video game developers, publishers, and gaming events is widely seen as an effort to better its standing and entice investment,” noted Eurogamer’s reporting on the deal.
The Communications Workers of America (CWA) has also pushed back hard. Last October, the union filed a formal petition with regulators opposing the deal, and later wrote to the US Federal Trade Commission requesting assistance in blocking it. Their concerns centre not only on the human rights implications but also on what a debt-laden ownership structure could mean for EA’s thousands of employees worldwide.
Xbox Backward Compatibility Comes to PC — But at What Cost?
While the EA deal dominated headlines, Microsoft’s Xbox division made waves of its own this week with a surprise announcement: Xbox Backward Compatibility on PC. For the first time, classic Xbox titles will be playable on PC and handheld devices like the ROG Xbox Ally.
The first wave of games includes four titles:
- Blink: The Time Sweeper — the cult 2002 platformer about a time-manipulating cat
- Conker: Live and Reloaded — the infamous remake of the crude classic
- Crimson Skies: High Road to Revenge — the beloved arcade flight combat game
- Fuzion Frenzy — the original Xbox party game
Each title is available for purchase at $9.99 on PC and is included with all Xbox Game Pass plans. If you already own a digital copy on console, your license carries over. The emulation layer includes modern enhancements: up to 4x resolution upscaling, VSync support, windowed and fullscreen modes, anisotropic filtering, and enhanced anti-aliasing.
Jason Ronald, VP of Next Generation at Xbox, teased that more features are coming, including achievements for the initial four titles “in the coming months.” But the announcement has drawn mixed reactions. While the preservation effort is commendable — especially as competitors like Sony move to eliminate physical media entirely — the timing feels suspect. This is the same week that Bethesda’s Montreal studio revealed it was giving terminated employees the “smallest severance legally possible,” and the announcement follows Microsoft’s decision to cut 3,200 jobs and shutter four studios including Double Fine, Compulsion Games, and Ninja Theory.
“The sudden and half-baked nature of this first wave makes me think that, even if the push is well-meaning, this is another ‘break in case of emergency’ fast reveal,” wrote Eurogamer’s Fran Ruiz, comparing it to last week’s hastily assembled Bethesda roadmap announcement.
Bethesda Union Fights Back Against “Bare Minimum” Severance
Speaking of Bethesda, the situation at the company’s Montreal studio is turning into a full-blown labour dispute. The OneBGS union — representing Bethesda workers — has filed a legal complaint against the company for allegedly violating Canadian labour laws following mass layoffs.
According to the union, Bethesda notified Montreal employees of their termination on July 17th, offering what OneBGS describes as “the smallest severance legally possible without bargaining with the union”: eight weeks of pay in lieu of notice plus remaining vacation pay, and immediate loss of health insurance benefits. This directly contradicts what employees were reportedly told in a video call on July 6th, where they were assured they would remain employed until September and that severance was being negotiated with the union.
“Bethesda and Xbox leadership depend on our labour to make them millions,” the union wrote on Bluesky, “and yet when we do, we are disposed of. The cycle of workers paying for the mistakes of management ends here.”
The timing was particularly galling: the termination emails arrived on the same day Bethesda publicly announced a slew of franchise updates, including Fallout 3 and New Vegas remasters, Fallout 5 entering pre-production, a massive Fallout 76 expansion, and continued support for Starfield. Workers were being discarded while the company celebrated its future pipeline — a pipeline those same workers would help build.
Canada’s strong federal labour laws may give OneBGS significant ammunition. Reports suggest even The Elder Scrolls 6 was not entirely safe from the cuts, and the union has announced a protest march in response to the layoffs.
Sony’s Disc Decision Threatens $7.2 Billion Second-Hand Market
In a move that could reshape how gamers buy and sell software, Sony’s decision to end PlayStation disc manufacturing by January 2028 has analysts warning of catastrophic consequences for the second-hand game market. According to a report by Dataintelo (via CNBC), the global pre-owned gaming market was worth an estimated $7.2 billion in 2025, encompassing games, hardware, accessories, and peripherals.
The breakdown of that market tells a story of global gaming culture:
- North America: 36.8% of the market ($2.65 billion), with over 38% of all US game transactions involving pre-owned titles
- Europe: 28.3%, led by the UK, Germany, France, and the Nordics, with CEX as the dominant retailer
- Asia Pacific: 24.6%, with significant growth in Japan and South Korea
- Latin America, Middle East & Africa: 10.3%, with Brazil, Mexico, Saudi Arabia, and South Africa showing the fastest growth
Michael Pachter, managing director of strategic planning at Wedbush Securities, was blunt about the implications: “Realistically, at least one-third of games have been sold historically as used, and the games that were sold also provided currency to the gamer who traded them in as cash to pay for new games. Brick and mortar game retail is doomed.”
Kazunori Ito, director of equity research at Morningstar, noted the forced nature of the transition: “There is an important difference between players accepting that shift because they see value in it, and having it effectively forced on them by taking away the alternative. Most would prefer to make that transition in their own way and at their own pace, rather than having it driven by the end of physical discs.”
The decision also strongly suggests that the upcoming PlayStation 6 will not include a disc drive — a move that could alienate millions of collectors and budget-conscious gamers. Meanwhile, reports indicate Microsoft is working on a way for players to digitise their physical collections for its next-generation Xbox, codenamed Project Helix.
Palworld Hits 30 Million Sales: The Survival Sensation That Won’t Quit
In brighter news, Pocketpair’s Palworld has officially surpassed 30.5 million units sold as of July 21st, 2026, generating approximately $700 million in gross revenue from copies alone. The 1.0 launch has been a monumental success, with the game hitting its biggest concurrent player peaks since the 2024 early access debut.
The breakdown of Palworld’s platform distribution is telling:
- Steam: 64.9% of players — unsurprisingly the dominant platform
- Xbox: 31.1% of the player base
- PlayStation: 4% of players
A 30% launch discount on Steam helped push nearly 1.5 million additional copies since the 1.0 release date, adding $25 million in gross revenue. The United States and China represent the two largest markets on Steam, each holding roughly 27% of the share. The game has also added approximately 10 million players through Xbox and PC Game Pass since 2024.
But it hasn’t all been smooth sailing. Pocketpair’s ongoing legal battle with Nintendo over patent infringement continues to cast a shadow over the game’s success. The Japanese gaming giant has been aggressive in its enforcement, and the outcome of the case could have significant implications for the “creature collection” genre as a whole. Still, Pocketpair’s head of publishing Bucky has potentially teased skins for new Pals, and Palworld’s inclusion in the latest Fortnite in-game survey suggests that a crossover collaboration might be on the table — legal complications notwithstanding.
Call of Duty: Black Ops 7 Introduces a Third Matchmaking System
Activision has managed to make an already confusing situation even more convoluted. Call of Duty: Black Ops 7 now offers three separate matchmaking systems, a move that has left even dedicated players scratching their heads.
The newest addition, launched with Season 5, is “inspired by” the recently released PlayStation ports of the original Black Ops 1 and Black Ops 2. It joins the existing “standard” matchmaking (which prioritises skill-based pairing, often criticised by vocal sections of the community as SBMM) and the “Open” system (which takes “minimal skill consideration” into account).
Activision’s announcement referenced the renewed love for classic Call of Duty: “We’re also excited to see all the recent love for Black Ops and Black Ops 2, which reinforced that there are many elements of those experiences that players appreciate.” The new system is available across Quick Play, Party Games, and the Black Ops Classic playlists.
What sets this third option apart from the existing “Open” mode remains unclear — Activision has not elaborated, and the company has been pressed for clarification. The confusion underscores a broader identity crisis within the Call of Duty franchise, which is simultaneously trying to satisfy fans of the classic, less movement-focused era and those who enjoy the modern, high-mobility gameplay. August’s Modern Warfare 4 beta will continue the tradition of offering both Open and standard matchmaking, suggesting this fragmented approach may become the new normal.
Steam Revamps Wishlists and Gifting — A Quiet But Welcome Upgrade
Amidst all the corporate drama, Valve quietly shipped one of the most user-friendly updates of the year. Steam’s latest update brings comprehensive improvements to wishlists and gifting, addressing years of community requests.
The headline feature is custom wishlist categories. Players can now create unrestricted custom categories for their wishlisted games, assign future additions to specific categories, and filter their wishlist with a single click. Even better, wishlist notifications can be customised per category — so you can choose to be alerted only when games in your “RPGs” or “Co-op with friends” list go on sale, rather than drowning in notifications during major Steam events.
Other improvements include:
- Demo notifications: Get alerted when a wishlisted game gets a demo, with the demo flagged directly on your wishlist
- Microtrailers: Tiny trailers now play directly on wishlist pages, just like on store pages
- Improved search: Autocomplete titles and faster results within the wishlist
- Shared wishlist deep-linking: Share a link that opens directly to a specific category — perfect for (passive-aggressively) hinting at gift ideas
On the gifting side, Valve has expanded guest checkout to include any game (previously limited to hardware and gift cards), enabled sending games and digital gift cards to email addresses without knowing if they’re associated with a Steam account, and improved cross-region gifting with automatic regional pricing calculation at checkout. Gifts expire after 30 days if unclaimed, and cross-region gifting is still subject to some limitations.
Hasbro Scales Back Gaming Ambitions: $56 Million Write-Down, But Exodus and Warlock Survive
Hasbro’s video game publishing ambitions are contracting. The company, which went on a spending spree in 2022 following the massive success of Baldur’s Gate 3, has recorded a $56 million write-down across its games portfolio, reaching into 2028. CEO Chris Cocks confirmed the news during Hasbro’s Q2 2026 financial results call.
“Over the last several quarters, we have reviewed our portfolio and updated our plans for Hasbro’s digital future,” Cocks told investors. “That work included cancelling several games scheduled for release in 2028 and beyond and recording a $56m non-cash write down this quarter for related capitalised costs.”
However, two major projects remain safe: Exodus, the sci-fi RPG frequently compared to Mass Effect, and Warlock, a new Dungeons & Dragons game. Both have “entered their finishing phases” and are on track for 2027 releases. Cocks described them as meeting “the bar we are setting for owned publishing: big audience potential, strong genre fit, franchise potential and meaningful opportunities beyond the initial game.”
The cancellations include a high-profile single-player D&D action game from Stig Asmussen’s Giant Skull studio (Asmussen previously directed God of War 3 and Star Wars Jedi: Fallen Order). The team is reportedly still pitching new projects to Wizards of the Coast while searching for alternative publishers.
Notably, a sequel to Baldur’s Gate 3 remains conspicuously absent from Hasbro’s pipeline, despite the original being one of the most acclaimed RPGs of all time. Cocks confirmed the company has been “talking to lots of partners” about the franchise’s future, but nothing concrete has materialised.
The Bigger Picture: An Industry in Flux
Step back and look at the week’s news as a whole, and a clear picture emerges: the gaming industry is undergoing a period of unprecedented transformation. Ownership is shifting from traditional corporate structures to sovereign wealth funds and private equity. Labour relations are deteriorating as mass layoffs are followed by minimum severance and union busting. Physical media is being phased out, threatening second-hand markets and consumer choice. And even the basic mechanics of multiplayer gaming — like how you find someone to play with — are becoming increasingly fragmented.
Yet amidst all this turbulence, there are bright spots. Palworld‘s 30 million sales prove that a small studio with a wild idea can still break through. Valve’s Steam updates show that at least one major platform is listening to what players actually want. And the preservation of classic games through Xbox’s backward compatibility program — however imperfectly timed — demonstrates that the industry’s past hasn’t been entirely forgotten.
The Saudi-PIF acquisition of EA will be the story that defines 2026 in gaming. Whether it leads to new investment in beloved franchises or simply more debt, more layoffs, and more sportswashing remains to be seen. What is certain is that the industry that emerges on the other side will look fundamentally different from the one that existed before.
For gamers, the best we can do is stay informed, support the developers who make the games we love, and hold the increasingly powerful entities that control this industry accountable for how they wield that power.
What do you think about the week’s biggest gaming stories? Let us know in the comments below.