Saudi Arabia now owns 6.07% ofNintendoafter the country’s Public Investment Fund increased its stake in the Japanese company in a filing on Thursday. This is a 1% increase from last May when the PIF announced it had bought up 5.01% ofNintendoshares to add to its growing portfolio of international investments.
The PIF is one of the largest sovereign wealth funds in the world and is Saudi Arabia’s attempt to diversify its assets and get away from its dependence on oil sales. It has invested worldwide in various countries and places but has spent billions buying up shares of video game companies in Japan, the United States, and elsewhere. These include Electronic Arts, Nexon, Capcom, and others, plus abillion-dollar investment into the Embracer Groupwhich is the parent company of publishers THQ Nordic and Saber Interactive.
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In early 2022 Saudi Arabia created the Savvy Gaming Group, an organization funded by the PIF and intended to help the country’s diversification by diving into the billion-dollar gaming and esports industry. The group is led by Crown Prince Mohammed bin Salman, who also heads the PIF, and he has shown no shyness with investing large sums of money into gaming after he bought a little under97% of Japanese developer SNKin the middle of 2022. This diversification process hasn’t been without dispute, though, as some have noted Saudi Arabia’s wealth inequality and its stance on human rights as reasons to be cautious of such investments.
The move comes after theSwitch became the third highest-selling game consoleof all time, passing 118 million units sold to take the third place spot behind the PlayStation 2 and Nintendo DS. Sales are reported to have slowed down due to component and chip shortages that have impeded not just Nintendo but many companies' production of electronics for the last few years.
The Public Investment Fund has suffused money into numerous companies over the years, such as Disney, Uber, Skyborn Renewables, etc., and will continue to do so to get away from its heavy dependence on oil. Its foray into the world of gaming hasn’t been met with agreement by everyone, but most companies will continue to accept fresh capital in order to remain profitable and continue producing games and competitive esports teams. As the world of gaming continues to develop intothe multi-billion dollar industry it has become, more and more investors will continue to see the value and growth potential of such a business. Players and gamers will have to wait and see if these continued investments bring positive or negative influences to the companies that produce their favorite products.
