By Sagar V. Mankar Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), is reportedly planning to increase its investments in Nintendo Co. and other major Japanese gaming companies to boost the nation’s entertainment sector.
This was revealed by Kyodo News, following an interview with Prince Faisal bin Bandar bin Sultan Al-Saud, vice chairman of Savvy Games Group, a gaming subsidiary of the PIF, during the Tokyo Game Show last week.
“There are always opportunities,” Prince Faisal remarked, hinting at potential future investments. He further explained that the PIF is in the process of transferring its existing shares in Japanese companies to Savvy Games Group, aiming to create stronger synergies. According to a Savvy representative who spoke to Nikkei last month, this transfer is expected to be completed by 2025.
As of now, PIF holds 8.58% of Nintendo and 8.97% of Koei Tecmo Holdings Co.. The fund also acquired stakes in Capcom and Nexon in 2022, which have since increased to 6.6% and 10.23%, respectively.
Prince Faisal clarified, however, that PIF will not raise its stakes in these companies without the consent of its partners. “It’s important to keep the communication going so you get there in the right way,” he explained, “We don’t want to rush into anything.”
Looking ahead, the PIF plans to expand its involvement in the gaming industry beyond investments to include more active collaborations. This initiative is part of a larger strategy to leverage intellectual property (IP) across the Middle East, as Nikkei reported before.
Saudi Arabia has significantly increased its investment in entertainment, particularly in gaming and animation, under the leadership of Crown Prince Mohammed bin Salman, who also serves as chairman of Savvy Games Group. The country is working to diversify its economy and reduce its reliance on the oil industry.
One of Saudi Arabia’s major entertainment projects includes the construction of Qiddiya, a massive entertainment city southwest of Riyadh. Qiddiya will feature a stadium, a Formula One track, esports facilities, and the world’s first theme park dedicated to the popular anime and manga series, Dragon Ball.
Savvy Games Group sees significant business opportunities in collaborating with Japanese gaming companies to promote the localization of video games, especially by utilizing Japanese IP, according to the vice chairman.
Beyond Japan, the PIF has also acquired stakes in other gaming giants like Electronic Arts (EA), where it now holds 9.34%, Take-Two Interactive with 6.52%, and Activision Blizzard.
News Source: gamesindustry.biz, Kyodo News, Nikkei