Saudi Arabia may acquire a bigger stake in Nintendo and other Japanese gaming companies
Update:
Despite stating that it was intending to increase its investments in Japanese game companies, it has been reported by CNBC that Savvy Games Group reduced its stake in Nintendo from 8.58% to 7.54% on October 8.
Original article:
Saudi Arabia's sovereign wealth fund is considering increasing its current stakes in Nintendo, Koei Tecmo, and other Japanese companies as part of its long-term plans.
The details:
In an interview with Kyodo News (via VGC), Prince Faisal bin Bandar bin Sultan Al-Saud, the vice chair of the Public Investment Fund (PIF), confirmed plans to invest more in the entertainment and gaming sectors. "There are always opportunities," the Prince said. "It's important to keep the communication going so you get there in the right way. We don't want to rush into anything."
The PIF currently owns 8.58% of Nintendo, having previously acquired a 5.01% stake in 2022, which Nintendo claimed it was unaware of until news reports informed it of the investment. Koei Tecmo, best known for its Dead or Alive and Dynasty Warriors franchises, has also received a significant investment from the PIF, with the Saudi group holding an 8.97% stake.
The PIF has also invested billions in Western gaming companies, including stakes in EA, Activision Blizzard, and Take-Two, which have since been transferred to its subsidiary, Savvy Gaming Group. This, combined with the group's increasing investments in other areas such as esports and traditional sports, has raised concerns about the Kingdom of Saudi Arabia gaining too much "control" over entire industries with its seemingly limitless budget.
Saudi Arabia has a dark human rights record, with some accusing the regime of "sportswashing" by hosting impressive events and tournaments with large prize pools to improve its image. For example, it hosted the multimillion-dollar Esports World Cup in Riyadh earlier this year and intends to host the official Olympic Esports Games beginning in 2025. However, given its history of holding a strong anti-LGBTQ+ stance and allegedly killing journalists who spoke negatively about the kingdom, companies such as esports organization Team Liquid have been forced to apologize for previously attending its events.
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