Rishika Shahi
Saudi Arabia is looking to increase its investment in Nintendo, following a recent statement from Prince Faisal bin Bandar bin Sultan Al-Saud, vice chair of the Savvy Games Group, a subsidiary of the kingdom’s Public Investment Fund (PIF). This potential move comes as part of Saudi Arabia’s broader strategy to diversify its economy away from oil dependency and position itself as a global player in the gaming industry. Following the announcement, shares of Nintendo saw a notable rise, reflecting investor optimism about the future collaboration.
Current Stake and Recent Developments
As of mid-2024, the PIF holds an 8.58% stake in Nintendo, making it one of the company’s largest shareholders. However, reports indicate that this stake has recently been reduced to 7.54%. Despite this reduction, the PIF remains committed to exploring further investments in not only Nintendo but also other Japanese gaming companies. The interest was initially reported by Kyodo News, which highlighted Prince Faisal’s comments about expanding ownership in the gaming sector.
The Saudi government aims to transform the kingdom into a hub for the global gaming industry, investing approximately $38 billion to achieve this goal. The PIF has been actively acquiring stakes in various gaming companies, including Koei Tecmo and Capcom, as part of its strategy to build a diverse portfolio. This initiative aligns with Crown Prince Mohammed bin Salman’s Vision 2030 plan, which seeks to reduce reliance on oil revenues and promote economic diversification.
Impact on Nintendo and the Gaming Industry
At the moment, Saudi Arabia is Nintendo’s biggest shareholder, and that influence is felt abroad. The government has sizable shares of several gaming giants, including roughly 10% of Nexon, 5% of Capcom, and 9% of EA, although not being the major investor for these. Saudi Arabia appears to have no intention of directly influencing the creation of video games. Aside from these expenditures, other movies, like Spider-Man 2, had parts that were banned before they were released in the nation.
As gaming becomes more closely linked to Saudi Arabia, limitations like this may attract more notice. The nation intends to host the first Olympic eSports competition in 2025, which will probably emphasize the expanding ties between the nation and the global gaming industry. With the Switch successor and this competition on the horizon, 2025 may be a turning point for Saudi Arabia and gaming.
GIPHY App Key not set. Please check settings