In a surprising turn of events, the International Olympic Committee (IOC) and Saudi Arabia have mutually decided to terminate their 12-year partnership for hosting the Olympic Esports Games, marking a significant setback in the kingdom’s sports modernization efforts.

The collaboration, initially announced before the Paris Olympics last year, was part of Saudi Arabia’s Vision 2030 program, personally championed by Crown Prince Mohammed bin Salman. The inaugural event, originally planned for Riyadh, had already been postponed from its initial 2024 date to 2027.

This unexpected split comes just weeks after the Saudi sovereign wealth fund’s massive $55 billion acquisition of Electronic Arts, a major video game developer. The IOC stated they will “develop a new approach” to video gaming Olympics and “pursue a new partnership model” to better align with the Olympic movement’s long-term goals.

Saudi Arabia has been actively investing in the esports landscape, already hosting the Esports World Cup, which features popular games like Call of Duty and Street Fighter. The annual tournament offers millions in prize money and has direct support from the crown prince.

The partnership’s dissolution highlights the challenges of integrating competitive video gaming into traditional sporting frameworks. Previous IOC leadership, including former president Thomas Bach, had emphasized the importance of maintaining “Olympic values” when considering game titles for potential inclusion.

Moving forward, the IOC has expressed commitment to finding alternative pathways for integrating esports into the Olympic ecosystem. One potential option could involve returning to Singapore, which hosted a week-long video gaming exhibition for Olympic stakeholders in 2023.

This development underscores the complex negotiations and cultural adaptations required when bridging traditional sports institutions with the rapidly evolving world of competitive gaming. As the esports landscape continues to expand, organizations like the IOC must navigate intricate diplomatic and cultural considerations.

The termination of this partnership serves as a reminder that even ambitious, well-funded international sports initiatives can encounter unexpected challenges in execution and alignment of vision.