The Public Investment Fund of Saudi Arabia purchased a 5% stake in Nintendo Co Ltd, making it the kingdom’s fifth-largest shareholder. The investment fund, chaired by Crown Prince Mohammed bin Salman, previously bought stakes in Nexon and Capcom, two Japanese video game developers. The stake in Nintendo is worth around $3 billion. The Public Investment Fund is also a leading investor in SoftBank Group Corp’s $100 billion Vision Fund.
In recent years, the fund has invested in videogames and other media companies. It has also purchased a majority stake in SNK and Capcom. This latest acquisition will make the gaming giant part of its Electronic Gaming Development Company.
Nintendo Saudi Arabia is the latest investment to be announced by this fund, and this is good news for fans of Japanese videogames. However, the move is unlikely to benefit all videogame companies.
Big Nintendo news as Saudi Arabia's sovereign wealth fund reports a 5% stake in the Kyoto-based videogame maker, worth around $3 billion.
The Public Investment Fund continues its love of Japanese videogames, having recently reported similar-sized stakes in the likes of Capcom pic.twitter.com/qZ464fAgUR
— Gearoid Reidy リーディー・ガロウド (@GearoidReidy) May 18, 2022
The newest investment in video games comes at a time when the government of the kingdom has been trying to diversify its portfolio.
Despite a poor human rights record, the Kingdom has been making big moves in the video game industry and is now investing in Nintendo, Activision Blizzard, and Take-Two Interactive. In recent years, the kingdom has also poured billions into esports.
The investment may raise concerns for some who have political views about Saudi Arabia. Despite its strong economy, the Saudi government has also been accused of human rights abuses.
However, the Saudi government’s website states that it intends to become a global investment powerhouse with a mission to drive the Saudi economy into the future.