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The direction of travel is clear in the longer term, and the value of high-end video gaming IP is only increasing as players continue to concentrate engagement among fewer, more popular franchises and games," Raymond James analysts said.
PIF has bought or made major investments in other video game companies such as Take-Two Interactive (TTWO.O)
, opens new tab and Nintendo (7974.T), opens new tab and has also bet big on growing other entertainment sectors, having signed deals to expand cinemas in the kingdom and taking a stake in Japanese animation firm Toei Co (9605.T)
, opens new tab.
"The PIF has shown heightened interest in entertainment assets with prominent positions in popular culture. I would expect them to be more focused on digital media and less on print media, or traditional film and TV delivery models like linear television and movie theaters," said Jon Wakelin, Partner at tech strategy consulting firm Altman Solon.
Experts say that while paying hefty amounts to own large IP could benefit in the long run, high production and development costs could pose a financial risk if it is not deployed appropriately.