Saudi Arabia's sovereign wealth fund has boosted a stake in Nintendo to 6.07%, as the oil-rich kingdom increases a presence in the gaming industry. The Public Investment Fund (PIF) acquired a 5.01% share in the Kyoto-based game company in May last year. Both moves were made for investment purposes, according to the filings.
This wouldn’t be the first video game company this PIF has invested in, as Saudi Arabia has invested in companies such as Capcom, Embracer, Activision, and more already. The PIF currently has $3,000,000,000 worth of Activision stock, which Microsoft has stated it will be taking back after acquiring the company. One of the biggest stakes they currently have is with SNK, where they currently own 96% of all shares. Last fall, it was claimed that this ownership didn’t affect SNK “in any way”. The Saudi Arabia PIF seems to be very invested in the Japanese gaming industry, especially with the SNK ownership.
Why it matters
Given the financial strength of the PIF, which has recently been the subject of major, unconfirmed rumours around a potential WWE buyout, Saudi Arabia could be looking to further expand its investments in the games industry in future. Furthering its investment in Nintendo is a sign its business dealings are advancing well, with forecasted games industry growth likely driving this increased push.