Recent reports suggested a potential increase in Saudi Arabia’s Public Investment Fund (PIF) stake in Nintendo, but a surprising turn of events has unfolded. Despite rumors circulating just two days ago, the wealth fund has actually decreased its shareholding in the video game giant.
Japanese publication Kyodo News initially reported that Saudi Arabia might be considering buying more gaming stock in Nintendo. This speculation stemmed from a conversation snippet with Crown Prince Faisal bin Bandar bin Sultan Al-Saud at the Tokyo Game Show 2024. However, the narrative took a sharp turn when new regulatory documents filed in Japan revealed that the PIF had reduced its stake.
The Saudi PIF now holds 7.54% of Nintendo shares, a decrease from the previously held 8.58% as of June 2024. This translates to approximately 97.6 million shares, valued at around $5.3 billion, down from 111.45 million shares (approximately $6 billion) previously held. The decrease represents a loss of roughly 1.69 million shares, or about $700 million in value.
Following the revelation of the PIF’s reduced stake, Kyodo News amended their earlier report. Crown Prince Faisal clarified his stance, emphasizing the importance of careful communication: “It’s important to keep the communication going so you get there in the right way. We don’t want to rush into anything.”
It’s worth noting that through its subsidiary, Savvy Games Group, the Saudi PIF has been actively investing in the gaming industry. These investments range from acquiring stakes in companies like Electronic Arts and Koei Tecmo to acquiring major groups like Scopely, the team behind the successful $3 billion Monopoly Go! game. This move by the PIF to reduce its Nintendo stake, despite its previous interest in the gaming industry, raises questions about its long-term strategy in the gaming market. It remains to be seen how this development will affect future investment decisions by the PIF in the gaming sector.
