Saudi Arabia’s Sovereign Wealth Fund Adjusts Stake in Nintendo
In a recent regulatory filing, Saudi Arabia’s Public Investment Fund (PIF) revealed that it has reduced its stake in Nintendo Co. from 8.58% to 7.54%. This move comes just a day after reports emerged that a senior executive at the PIF was considering increasing its stake in the Japanese video game giant.
Prince Faisal bin Bandar bin Sultan al-Saud, vice chairman at Savvy Games Group, the PIF’s gaming-focused subsidiary, had hinted at the possibility of upping its stake in Nintendo during an interview at the Tokyo Game Show in late September. However, he emphasized the importance of maintaining open communication with partners and avoiding hasty decisions.
The news of the potential increased stake had sent Nintendo’s shares soaring by 4.4% on Monday. Saudi Arabia has been aggressively investing in the gaming sector, both domestically and internationally, as part of its Vision 2030 plan to diversify its economy and become a hub for e-sports and gaming.
Nintendo, meanwhile, has been facing challenges in the slowing console gaming market, with its flagship Switch hybrid console losing momentum after seven years. The company reported a 46% year-over-year drop in Switch sales in its fiscal first quarter, shipping 2.1 million units compared to 3.91 million units in the same period last year.
The market is now eagerly awaiting Nintendo’s next move, particularly the release of the successor to its Switch product, which was confirmed in May but lacks further details. As the gaming industry continues to evolve, Saudi Arabia’s PIF remains a significant player, shaping the future of gaming and e-sports globally.
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