NEWS

Saudi Arabia Considering Increasing Their Stake In Nintendo

In recent years, Saudi Arabia has recognized the vast potential of the gaming industry and is actively working to promote it. The government has committed to investing $38 billion in the gaming sector by 2030.

Recently, Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), is reportedly contemplating increasing its stake in Nintendo. In a recent interview, Prince Faisal bin Bandar bin Sultan Al-Saud, vice chair of the PIF, discussed the potential for further investment in the Japanese gaming giant.

Importance: The gaming industry is now the largest in entertainment, overtaking both music and film. This makes investing in gaming a smart move for Saudi Arabia as it can boost economic growth and help diversify the economy beyond oil.

Nintendo
Nintendo Switch Is The Longest Lasting Home Console Ever

Prince Faisal told Kyodo News that there are always good opportunities, emphasizing the importance of a cautious approach. He stated that they don’t want to rush into anything, noting that maintaining good communication is crucial for making the right decisions.

The PIF, which is involved in various sectors such as sports, film, theme parks, and video games, first acquired a 5.01% stake in Nintendo in May 2022. As of 2024, the PIF holds an 8.58% stake in the company.

Interestingly, when the PIF initially bought into Nintendo, the Japanese company reportedly learned about the investment through news reports rather than being directly informed of the transaction.

The PIF has become a major player in the global video game industry, aligning with Saudi Crown Prince Mohammed bin Salman’s strategy to diversify the Saudi economy and reduce its reliance on oil revenue.

Nintendo
Nintendo Switch – Image Credit – Nintendo Life

In addition to its growing stake in Nintendo, the fund has made substantial investments in other prominent gaming companies. In December 2020, the PIF acquired over $3 billion worth of stock in Activision Blizzard, Electronic Arts, and Take-Two Interactive.

Furthermore, the PIF played a key role in organizing the Esports World Cup, which was held in Saudi Arabia earlier this year, highlighting its increasing involvement in the entertainment and gaming sectors.

While the potential for a larger investment in Nintendo remains under consideration, the PIF’s moves in the gaming industry are a testament to its broader goals of expanding into new, global entertainment markets.

More News:

Ubisoft Might Be Going Private Amid Falling Market Value

Hi-Fi Rush 2 To Feature A More Open World Experience

Tekken Almost Added KFC’s Colonel Sanders As A Guest Character Once