Pixel P&L: Can Saudi Billions Buy America's Gaming Culture? Senators Say Not So Fast

Welcome to another Pixel P&L edition. This issue takes 5 minutes to read. If you only have one, here are the 5 most important things:

• U.S. Senators challenge EA's $55B Saudi buyout, citing national security risks and surveillance concerns.

• The gaming industry shows steady growth in Q3 2025, but fundraising activity cools dramatically.

• ESL FACEIT cuts more jobs in the third round of layoffs under Saudi ownership.

• Ghost of Yōtei becomes PlayStation's biggest European launch since Spider-Man 2.

• 400 Activision Blizzard workers form a union with CWA as Microsoft's labor agreement expires. 

Let's get into it.

U.S. Senators Challenge Saudi-Led EA Buyout on Security Grounds

U.S. Senators Richard Blumenthal and Elizabeth Warren pressed federal officials to examine national security risks in the proposed $55 billion leveraged buyout of Electronic Arts by a Saudi-led consortium.

The senators sent letters to Treasury Secretary Scott Bessent and EA CEO Andrew Wilson regarding the acquisition led by Saudi Arabia's Public Investment Fund, Silver Lake, and Jared Kushner's Affinity Partners. The deal would take EA private and add $20 billion in debt.

The lawmakers cited concerns about potential surveillance of Americans, covert propaganda, and censorship by Saudi authorities. They warned the kingdom could gain access to EA's AI research and user data through the transaction.

The senators also questioned Kushner's role, suggesting his involvement might be calculated to secure Trump administration approval. They noted the deal includes a $1 billion termination fee if regulatory approval fails.

Blumenthal and Warren requested information from Wilson on how EA would operate free from authoritarian influence. They urged the Committee on Foreign Investment in the United States to investigate the transaction's risks and report findings publicly.

Gaming Industry Posts Steady Growth Despite Fundraising Slowdown

The global games industry maintained stable growth in Q3 2025 with 49 mergers and acquisitions, headlined by Electronic Arts' $55 billion sale to a consortium including Saudi Arabia's Public Investment Fund, Silver Lake, and Affinity Partners.

According to Aream & Co's Video Game Market Update, mobile gaming in-app purchases reached $21 billion, driven primarily by Asian publishers. PC gaming surged 18% year-over-year, boosted by successful Steam releases including Borderlands 4, Dying Light: The Beast, and Team Cherry's Silksong.

Console gaming showed robust performance with the Nintendo Switch 2 launch helping Nintendo's revenue grow 2.5 times year-over-year, while Sony and Microsoft posted double-digit gains. Bandai Namco's minority stake sale to Sony and Prime Insight's acquisition by Aonic also marked significant deals.

However, fundraising activity cooled considerably. Public offerings raised just $0.3 billion in Q3 versus $10.1 billion in the first half. Private investment remained subdued at 82 deals, with Series A rounds declining for the fifth straight quarter.

⚡️Quick Bytes

ESL FACEIT Cuts Jobs in Third Round of Layoffs

ESL FACEIT Group underwent another round of layoffs, marking its third since its 2022 merger under Saudi Arabia's Savvy Games Group. CEO Niccolo Maisto called the cuts a "necessary adjustment" to build sustainability. Despite nearly tripling revenue and securing partnerships with Red Bull and Lamborghini, the esports operator faces pressure from its Saudi-backed parent company to meet stricter financial targets amid industry-wide profitability challenges.

'Ghost of Yōtei' Marks PlayStation's Biggest European Launch Since Spider-Man 2

Ghost of Yōtei debuted at No. 2 on European sales charts for the week ending October 5, becoming PlayStation's largest first-party launch since Marvel's Spider-Man 2. The Sucker Punch sequel matched its predecessor's sales performance across digital and physical formats. EA Sports FC 26 retained the top spot despite sales dropping 62% week-on-week, while Nintendo's Super Mario Galaxy double pack placed third, selling about a quarter of 2020's Super Mario 3D All-Stars collection.

Activision Blizzard Platform Workers Form Union Covering 400 Employees

Nearly 400 Activision Blizzard Platform & Technology workers, including Battle.net engineers and support staff, voted to unionize with the Communications Workers of America. Microsoft recognized the union, formed just before its labor neutrality agreement expires this week. The push follows 1,900 gaming division layoffs in January. Workers cited job security and retention concerns, with one 20-year veteran noting colleagues leaving for "preventable reasons." This marks the latest Activision Blizzard unionization following the Diablo team's organizing two months ago.

⚔️Side Quest

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💡Did You Know

Super Smash Bros. and Kirby creator Masahiro Sakurai is getting his own manga biography this November. The 160-page book, supervised by Sakurai himself, chronicles his journey from childhood gamer to legendary developer through six illustrated chapters. Titled "Learn About People and Work Through Manga: Masahiro Sakurai – Making the World More Fun with Games," it reveals previously unknown stories about creating Kirby, developing Smash Bros., and founding Sora Ltd. The manga includes industry columns and a complete career timeline, offering fans unprecedented insight into one of gaming's most influential creators. Available November 18 in Japan for 1,430 yen ($9 USD), with no international release announced yet.

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