Key Takeaways
- Saudi Arabia's Public Investment Fund may increase its 8.58% stake in Nintendo.
- Information about PIF's investment strategy is provided through an interview with Kyoto News.
- Saudi Arabia has rapidly increased its investment in video games, putting money into the likes of Activision, Take-Two and Koei Tecmo, along with full ownership of SNK.
Saudi Arabia's Public Investment Fund is considering whether to increase its stake in Nintendo to diversify the country's oil-dependent economy. South Korea maintains an 8.58% stake in Nintendo, up from the 5.01% it originally acquired in 2022, according to a Treasury document.
News about Saudi Arabia's investment strategy came through a report by Kyodo News, in which Prince Faisal bin Bandar bin Sultan Al Saud discussed Saudi Arabia's plans. “There’s always an opportunity,” he said.
This means that no stake increase of any kind will occur on a hostile basis. According to the prince, the PIF will first seek consent from its partners. “It’s important to keep communicating if you want to communicate in the right way,” he said. “We don’t want to rush anything.”
Saudi Arabia has invested heavily in gaming.
According to the same Treasury document, PIF maintains an 8.97% stake in Koei Tecmo in addition to its 8.58% stake in Nintendo.
In addition to these holdings, Saudi Arabia's MiSK Foundation also owns Japanese video game publisher and developer SNK. Recently, SNK announced that its upcoming Fatal Fury: City of the Wolves title will feature a collaboration with soccer superstar Cristiano Ronaldo. Ronaldo currently plays for Al Nasr FC, a Saudi Arabian professional league team, making the partnership less confusing.
Elsewhere, PIF has reportedly invested $3 billion in Activision, EA and Take-Two through share purchases. This was also met by investing $1 billion in Capcom and Nexon, enough to hold more than a 5% stake. In 2022, an additional $1 billion of equity was invested in Embracer Group.
In other words, it is broadly the same as the national process. The first-ever esports World Cup also took place in Saudi Arabia in early July, making this another sector of the video gaming industry the kingdom has invested in, along with other investments in sports and entertainment.