By Sagar V. Mankar Saudi Arabia’s Public Investment Fund (PIF) has reduced its stake in Nintendo from 8.58% to 7.54%, according to a report by CNBC. This adjustment comes despite earlier indications from Kyodo News that PIF was considering expanding its investments in Japanese video game companies.
Prince Faisal bin Bandar bin Sultan Al-Saud, vice chairman of PIF’s subsidiary Savvy Games Group, previously mentioned that increasing stakes in gaming companies was “always a possibility.” However, he emphasized that the process should be approached carefully, stating, “We don’t want to rush into anything.” He also highlighted that any increase in stakes would require the consent of PIF’s partners.
This development aligns with Saudi Arabia’s broader Vision 2030 initiative, spearheaded by Crown Prince Mohammed bin Salman. Vision 2030 seeks to diversify the country’s economy by reducing its reliance on oil and investing in sectors like entertainment, gaming, and animation.
Part of this initiative includes the development of Qiddiya, a massive entertainment hub near Riyadh. The project will feature a stadium, a Formula One track, esports facilities, and a theme park inspired by Dragon Ball.
In addition to its stake in Nintendo, PIF holds an 8.97% share in Koei Tecmo Holdings, as per filings with Japan’s Finance Ministry. It has also acquired stakes in other prominent gaming companies, including Nexon and Capcom.
Saudi Arabia’s growing interest in the gaming industry reflects its commitment to becoming a global player in the sector. While the reduction in Nintendo’s stake may seem unexpected, it is likely part of a broader strategy to balance investments while pursuing long-term goals in the entertainment and gaming industries.
Sources: CNBC