Saudi Arabia’s Public Investment Fund is looking to increase its stake in Nintendo, as reported by Kyodo news and highlighted by VGC. The fund’s vice chair expressed the intention to diversify the economy away from oil by focusing on gaming and entertainment ventures.
In addition to Nintendo, the fund already holds stakes in other gaming companies such as Capcom, Nexon, Take Two Interactive, and Activision Blizzard. These shares are being transferred to the Savvy Games Group subsidiary. The fund has also shown interest in EA and recently acquired an £840m stake in Embracer Group, a move that followed the breakdown of a $2bn partnership earlier this year.
Prince Faisal bin Bandar bin Sultan Al-Saud, the vice chair of the PIF, emphasized the importance of careful consideration and communication in pursuing such investments. He mentioned that while there are opportunities, it is crucial to approach them thoughtfully and avoid rushing into decisions.
Apart from gaming, the PIF is involved in various entertainment sectors, including sports and films. Saudi Arabia has been making significant strides in the gaming industry, with recent developments such as hosting esports events like the Overwatch Champions Series and the upcoming esports Olympic Games.
The Savvy Gaming Group, a subsidiary of the Public Investment Fund, operates under the leadership of Prince Mohammed bin Salman. However, it’s essential to note that Prince Mohammed bin Salman has faced criticism for his alleged involvement in the assassination of journalist Jamal Khashoggi in 2018. Additionally, Saudi Arabia’s human rights record under his rule has been marred by controversies, including the criminalization of homosexuality and harsh penalties like floggings and the death penalty.
As Saudi Arabia continues to expand its presence in the gaming and entertainment sectors, the move to increase its stake in Nintendo reflects a broader strategy to diversify the economy and tap into new opportunities. With a focus on thoughtful decision-making and strategic investments, the PIF aims to navigate the complexities of the gaming industry while contributing to the country’s economic growth.