The Public Investment Fund (PIF) of Saudi Arabia reduced its ownership stake in Nintendo Co., trimming from 8.58% to 7.54%, shortly after reports surfaced that a high-ranking executive at the sovereign wealth fund was contemplating increasing its investment in the Japanese company.
During the Tokyo Game Show in late September, Prince Faisal bin Bandar bin Sultan al-Saud, the vice-chairman at Savvy Games Group, the PIF’s gaming-focused subsidiary, hinted at the possibility of boosting investments in Nintendo and other Japanese gaming firms. However, he emphasized the importance of obtaining consent from partners and conducting communication effectively to proceed in the right manner without haste.
The earlier report of topping shareholding in Nintendo boosted its share price by 4% on Monday.
Saudi Arabia has been actively investing in the gaming industry, striving to position itself as an e-sports and gaming hub in alignment with the Vision 2030 plan aimed at diversifying and modernizing the Saudi economy. Crown Prince Mohammed bin Salman also serves as the chairman of Savvy Games Group.
Meanwhile, Nintendo is facing challenges in the console gaming market due to slowing sales of its Switch hybrid console amid the emergence of newer gaming consoles from competitors like Microsoft and Sony. In the fiscal first quarter ending June 30, Nintendo reported a significant decline in Switch console sales, shipping only 2.1 million units compared to 3.91 million units a year earlier.
As the market awaits Nintendo’s future releases, the company confirmed plans to unveil a successor to the Switch product within the fiscal year, although specific details about the new console have not been disclosed yet.
