.png)
Just weeks after a record-breaking $55 billion acquisition of EA, the Public Investment Fund (PIF) of Saudi Arabia reportedly announced that it is unable — for now — to allocate further funds for new purchases, citing financial strain after a string of major investments. The news has sent shockwaves across the gaming industry, with many analysts warning that this could have far-reaching consequences for EA’s future and for the broader wave of mega deals.
What the Report Says
According to the sources, PIF’s balance sheet is under pressure after not only the EA buyout, but also a slate of other expensive, underperforming investments — including a high-profile mixed-use city project, a cruise line, and a luxury-market venture. Despite claims of “nearly $1 trillion in assets,” many of PIF’s holdings are illiquid or difficult to value, prompting the fund to freeze further allocations for the foreseeable future. 2
A PIF spokesperson noted that the fund still retains “significant cash and equivalent instruments,” but mounted criticism — especially from international investors — suggests confidence may be waning. 3
Why This Could Matter for EA and the Wider Industry
- EA now carries large debt after the leveraged buyout — an environment of tightened spending may limit the company’s ability to invest in new IP, live-service support, or large-scale projects. 4
- The halt on fresh PIF investments raises doubts about future big-ticket acquisitions in gaming, esports, or entertainment — especially ones requiring heavy upfront capital. 5
- Smaller publishers and developers who counted on PIF funding may now find themselves squeezed out or forced to seek alternate backers.
EA’s Risks and Uncertainties
In its regulatory filings, EA has itself acknowledged the risks tied to the acquisition. The company warned that the merger could “impair [its] ability to attract, retain, and motivate key personnel,” and potentially affect relationships with partners, suppliers, and customers during the transition. 6
Experts have already speculated that in the short term EA may restructure, cut non-essential assets, or delay riskier projects — a contrast from the widely publicized ambition the buyout was supposed to fuel. 7
What to Watch Next
- Whether PIF eventually resumes funding, or if this freeze signals a shift in investment strategy.
- Announcements from EA on payroll, project delays, or cancellations — especially around big franchises such as Battlefield 6, Mass Effect, and others under their umbrella. 10
- Industry-wide impact: how other studios and investors respond to the news — whether they tighten budgets or seek new funding sources.
Note: These developments are based on reports and insider leaks. PIF has not publicly confirmed a complete investment freeze—its statements emphasise liquidity and long-term commitment. But for now, the gaming world is watching closely.