A few additional factors are in play here:
1. The KSA does not traditionally just pass down leadership from father to son in a strict hereditary way. The King is typically chosen from a pool of half-brothers, brothers, uncles, cousins etc.. from one generation. The new appointment is a huge change, as it involves passing power down to the younger generation. This move is also a power play to concentrate power in one hereditary line.
2. The KSA is under genuine threat from the extremist groups it helped create. The KSA has spent the last century exporting Wahabism to consolidate power/wealth in Riyadh and Mecca. Now they realise this has backfired, as the extremists they created don't want anything to do with a royal family.
3. Iran has made huge steps forward in terms of exporting its own threats. Iran's actions in Yemen and Syria show it to be a major player. Iran has also shown that it is capable of wooing Russian support. The Saudis are now surrounded by Iran's proxy armies and the Sunni extremist armies, both of whom seek to displace them.
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