The Public Investment Fund of Saudi Arabia ups its investment in Nintendo and overtakes all other outside investors as the company's largest shareholder.
Saudi Arabia expanded its investment in Nintendo, becoming the company's largest outside shareholder. The sovereign wealth fund has increased its stake in Nintendo for the second time this week, confirming Saudi Arabia's position as a major investor in the esports and gaming industries.
Saudi Arabia has made significant investments in gaming over the last few years through its Savvy Games Group division. Last year, this Saudi Arabia state-owned company paid nearly $1.5 billion for the acquisition of ESL Gaming and FACEIT, combining the two esports tournament organizers into a single powerful entity. Capcom, Nexon, Activision, and Embracer are among the companies in which the Saudi Arabian Public Investment Fund has a stake. The country's ambition, according to Mohammed bin Salman, Crown Prince of Saudi Arabia and Chairman of the Board of Savvy Games Group, is to "make Saudi Arabia the ultimate global hub for the games and esports sector by 2030."
The Public Investment Fund of Saudi Arabia became Nintendo's largest outside investor, owning 8.26% of the popular Japanese gaming company. Saudi Arabia increased its holdings of Nintendo stock through the Savvy Games Group from 6% in January to over 8% one month later. This investment is part of Saudi Arabia's plan to invest heavily in the gaming market, putting it ahead of Japan's Government Pension Investment Fund but trailing Nintendo as the company behind iconic franchises such as Mario and The Legend of Zelda.
Saudi Arabia's gaming investments aim to establish the country as a major player in the industry, with a presence ranging from esports tournaments to major game developers and publishers. Saudi Arabia's Public Investment Fund is said to be worth more than $1 billion in both Capcom and Nexon, while the Savvy Games Group has a reported budget of $38 billion to invest in various gaming companies around the world.
This Saudi investment should have no effect on Nintendo's future plans, as the company recently announced the first wave of DLC for Splatoon 3 as well as a slew of new games during its Nintendo Direct presentation. This year, Nintendo is releasing a slew of highly anticipated games, including The Legend of Zelda: Tears of the Kingdom, Kirby's Return to Dreamland Deluxe, and Advance Wars 1+2 Re-Boot Camp. Despite these upcoming games, fans are still hoping for a Nintendo Switch successor, which does not appear to be on the horizon.
Source: Bloomberg