Arab News, Saturday, Jan 14, 2023 | Jamadi Al Thani 21, 1444
Saudi sovereign fund PIF raises its stake in Japanese video gaming firm Nintendo to 6%
Saudi Arabia's Public Investment Fund has increased its stake in Japan's
Nintendo Co. Ltd to 6 percent, a filing showed on Thursday, reflecting the
sovereign wealth fund's growing exposure to the Japanese video gaming industry.
PIF's stake in the Kyoto-based company has risen
from 5.01 percent to 6.07 percent, according to the ownership report filed with
PIF revealed its 5 percent stake in Nintendo in a
regulatory filing in May last year, stating that it was made for investment
purposes. It has also taken stakes in video game companies Nexon, Capcom, and
Nintendo shares were down 1.8 percent in the
With an aim to diversify its portfolio, PIF has
been building stakes in video game makers and e-sports firms over the past three
The sovereign fund had acquired more than $3
billion worth of stock in three US video-game makers involving Activision
Blizzard, Electronic Arts, and Take-Two Interactive Software during the fourth
quarter of 2020.
In June 2022, the PIF-owned Savvy Gaming Group
acquired almost 100 million shares in its Swedish rival Embracer Group, making
it the second-largest shareholder in the latter.
The group which was launched earlier last
year bought an 8.1 percent stake in Embracer for $1.05 billion. The move was
aimed at helping the Swedish game development company set up a regional hub in
Last September, Saudi Arabia’s Crown Prince
Mohammed bin Salman bin Abdulaziz Al-Saud launched the National Gaming and
Esports Strategy in a move to make the country a global hub for the gaming
industry by 2030.
As part of the strategy, Saudi Arabia’s ambition
is to see 30 competitive games developed by firms in the Kingdom by 2030
while creating 39,000 new job opportunities.
According to a study conducted last year by
YouGov, Saudi Arabia's gaming industry is expected to grow more than threefold
by 2030, resulting in the Kingdom’s gross domestic product surging about 50
In another report last year, Boston Consulting
Group noted that the Kingdom’s gaming consumption is projected to hit $6.8
billion by 2030, registering a compounded annual growth rate of 22 percent.