Saudi Arabia’s Public Investment Fund (PIF) has reduced its stake in Nintendo for the second time in two months. Japan’s Finance Ministry reported that PIF now owns 6.3% of Nintendo, down from 7.54%. This follows a 1.04% decrease in October, contradicting earlier reports of PIF expanding its Nintendo investments.
Despite this reduction, PIF remains a significant foreign stakeholder in Nintendo. PIF initially invested 5% in Nintendo in 2022 and increased its stake to over 6% the following year. It has also acquired shares in gaming and entertainment companies like Koei Tecmo, Capcom, Embracer Group, Activision, EA, and Take-Two Interactive.
PIF’s move to scale back on Nintendo aligns with its recent shift in investment priorities, focusing more on enhancing domestic investments. This change reflects a departure from PIF’s earlier emphasis on international expansions. The fund’s activities have faced scrutiny, with organizations like Amnesty International raising concerns over Saudi Arabia’s human rights issues.
Nintendo is reportedly planning to announce its next-generation console soon. Although they have not officially confirmed the console’s name, they have supported earlier rumors indicating that it will be backward compatible with the Nintendo Switch. This confirmation of backward compatibility suggests a continued collaboration with Nvidia, which is expected to provide the system-on-chip (SoC) for the new Nintendo hardware, allowing for potential compatibility with Switch software.
Meanwhile, while Nintendo’s stock remains strong, Saudi Arabia’s Public Investment Fund (PIF) has diverted its focus after previously investing heavily in the gaming industry.
