In a world where public investment is often scrutinized for its impact on national economies and citizen welfare, Saudi Crown Prince Mohammed bin Salman’s lavish spending on video games and related ventures is raising eyebrows. Reports reveal that the Crown Prince, known for his ambitious Vision 2030 plan to diversify Saudi Arabia’s economy, has funneled a staggering $750 million into a struggling augmented reality video game company, Magic Leap, sparking concerns over the misuse of public funds.
A Fantasy Turned Reality: The Crown Prince’s Love for Video Games
The Crown Prince’s fascination with video games is not a well-kept secret. His love for these digital escapades dates back to his teenage years, where he spent countless hours immersed in virtual worlds, much to the dismay of his father, then-Governor of Riyadh, Salman bin Abdulaziz. This obsession has only grown over time, with Mohammed bin Salman reportedly spending close to $70,000 on the “Battle Pass” online game between 2017 and 2020. His in-game character, ” Purrrrfect Devil, Angel Yukeo,” reached the unprecedented level of 14,430, setting a new record within the gaming community.
His gaming history is further detailed by reports indicating that since joining the gaming platform Steam in February 2011 under the alias “Abdullah Al Saud,” the Crown Prince has played over 10,000 matches, winning 51% of them. He has dedicated over 9,000 hours to the game “Dota 2,” over 550 hours to “Team Fortress 2,” and spent significant time on other popular titles like “Resident Evil 5,” “Portal 2,” and “Left 4 Dead 2.”
A Controversial Investment in Magic Leap
Mohammed bin Salman’s affinity for video games extends beyond personal entertainment; it has now become a matter of national concern. In 2022, the Saudi Public Investment Fund (PIF), directly controlled by the Crown Prince, became the majority owner of Magic Leap, a Florida-based company known for its augmented reality technology. The investment, initially viewed as a strategic move to bolster Saudi Arabia’s tech sector, has since turned into a financial quagmire.
Magic Leap, once a darling of Silicon Valley, has faced significant challenges in delivering on its promises. The company’s first product, an augmented reality headset released in 2018, failed to gain traction, resulting in massive layoffs—nearly 80% of its workforce. The company has since shifted focus to business applications and licensing its technology, but the financial strain continues. Recent filings in the United Kingdom reveal that Magic Leap is in desperate need of additional funding to meet its obligations through 2025, casting doubt on the viability of the company.
Despite these challenges, the PIF has continued to pour money into Magic Leap, contributing $590 million in 2023 and an additional $160 million in 2024. These investments, totaling $750 million, have raised concerns about the Crown Prince’s decision-making and the potential waste of public funds on a company with an uncertain future.
The Bigger Picture: Mismanagement of Public Funds?
The Crown Prince’s spending on Magic Leap and his personal indulgence in video games have sparked a broader debate about the priorities of Saudi Arabia’s leadership. Critics argue that the funds spent on these ventures could have been better allocated to address pressing domestic issues, such as unemployment, education, and healthcare.
Moreover, the Crown Prince’s apparent disregard for the financial instability of Magic Leap raises questions about the due diligence conducted by the PIF before making such substantial investments. With Saudi Arabia’s economy still heavily reliant on oil revenues, the need for prudent investment in sustainable and profitable ventures is more critical than ever.
A Need for Accountability
As Mohammed bin Salman continues to push his Vision 2030 agenda, the Crown Prince’s extravagant spending on video games and struggling tech ventures like Magic Leap serves as a stark reminder of the need for greater transparency and accountability in the management of public funds. While diversifying the economy and embracing new technologies are laudable goals, they must be pursued with careful consideration and a focus on long-term benefits for the Saudi people.
In a time when economic prudence is essential, the Crown Prince’s actions highlight the risks of unchecked power and the potential consequences of personal indulgences impacting national interests. As Saudi Arabia looks to the future, its leadership must ensure that investments, whether in video games or cutting-edge technology, are made with the country’s prosperity in mind, rather than the whims of a single individual.
