Saudi Arabia’s Public Investment Fund has reduced its stake in Japanese gaming company Nintendo. According to a Japanese regulatory filing, the firm cut its stake in Nintendo by 1.04% from 8.58% to 7.54%. Despite the cut, PIF still ranks among Nintendo’s biggest shareholders.
The Public Investment Fund (PIF) reduced its investment holdings in Nintendo by 1.04% from 8.58% to 7.54%. The cut came just a day after a senior executive commented on a potential stake increase in Japanese gaming companies like Nintendo.
Saudi Prince comments on PIF adding stakes in gaming firms like Nintendo
Prince Faisal bin Bandar bin Sultan al-Saud, vice chairman at Savvy Games Group, the PIF’s gaming-oriented subsidiary, spoke about the stake during the Tokyo Game Show. The executive told Kyodo News, a local media outlet, that the firm could increase its stake in gaming companies.
In the interview, the prince highlighted that the firm will only increase its holdings in Japanese gaming companies with the consent of its partners. According to June filings with the Japanese Finance Ministry, PIF owns 8.97% of Koei Tecmo Holdings Co. and has holdings in in-game software developers such as Capcom Co. and Nexon Co.
“It’s always a possibility. It’s important to keep the communication going so you get there in the right way. We don’t want to rush into anything.”
Prince Faisal
Nintendo shares reacted to the news by surging 4.4% on Monday following the report’s publication. Nintendo has struggled to reignite its slowing console market following its old and yet most-sold product, the Switch hybrid console. The console has achieved over 140 million sales globally during its seven-year reign.
However, the industry is rapidly evolving, and gamers are considering newer console models and more advanced gaming machines from other gaming brands like Sony and Microsoft. The console market has experienced increased competition since the arrival of gaming consoles like the Xbox Series X and PlayStation 5.
Saudi Arabia enters the gaming industry to diversify its oil-reliant economy
On the other hand, Saudi Arabia has championed investing billions of dollars in the entertainment, animation, and gaming industries in a bid to diversify from its heavy reliance on the oil industry.
The country is on track to develop the Qiddiya Project as an entertainment hub for sports and cultural activities in the Kingdom. The PIF is the main investor in the project collaborating with a group of local and international investors. The master plan includes the development of five different zones with more than three hundred entertainment and learning facilities.
The entertainment city will include a stadium, Formula One track, esports facilities, and the first-ever theme park devoted to the globally popular anime and manga series “Dragon Ball.”
The project is part of Saudi Arabia’s Vision 2030, which seeks to establish sustainable and distinctive investments within the Kingdom. These investments are Saudi Arabia’s efforts to diversify the national revenue sources from the oil industry and create new employment opportunities for young people in the Kingdom.
