(Corrects paragraph 2 in Oct. 2 story to say market is facing slower growth, not a downturn. Also corrects paragraph 8 to say PIF, and not its gaming arm, has bought or made major investments. The error also appeared in an earlier version of the story)

By Zaheer Kachwala

(Reuters) -Electronic Arts' record $55 billion leveraged buyout by Saudi Arabia's sovereign wealth fund and two other firms marks a turning point in the videogame industry, as companies look to capitalize on intellectual property through media crossovers.

Despite being the largest entertainment industry in the world, the videogame market is facing slower growth as consumers rein in spending in response to higher prices, forcing companies and executives to think of other ways to leverage successful IP.

One way they're doing that is through other types of media - like film and television.

Acquiring EA means the company's incoming owners, Silver Lake, Saudi Arabia's Public Investment Fund (PIF) and Jared Kushner's Affinity Partners, get their hands on properties including "Battlefield", "Apex Legends" and "The Sims."

Other companies of late have found success in translating wildly popular video games into film and television franchises, whereas in decades past, such adaptations - such as 2005's "Doom" or 2009's "Street Fighter: The Legend of Chun-Li" - often received poor reviews and stumbled at the box office.

The global success of Sony's "The Last of Us" television series in 2023 spurred Hollywood studios and gaming publishers to greenlight the film and TV adaptations of popular videogame intellectual properties. Those include Amazon Prime's "Fallout" series, a new season of Riot Games' "Arcane", Warner Bros' "A Minecraft Movie", and sequels to Nintendo's "Super Mario Bros" film and the "Mortal Kombat" movie. "Call of Duty" is also expected to be adapted for the big screen in a Paramount Skydance production.

EA, which is gearing up to launch the highly anticipated "Battlefield 6", already announced plans last year to partner with Amazon's MGM Studios to produce a film based on its simulation role-playing game, "The Sims".

"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 and Nintendo 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. 

"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.

For example, Swedish videogame group Embracer went on an acquisition spree over the last three to four years, buying up dozens of smaller studios and beefing up its portfolio of games. However, poor critical reviews for big titles and canceled projects hit the firm, leading to a three-way split of the company last year.

"Consolidating IP during a down market has its short-term benefits, but more often than not, ends up running into inefficiencies and a devaluation," said Joost van Dreunen, games professor at NYU Stern School of Business.