Saudi Arabia’s Public Investment Fund (PIF) plans to increase its stakes in Nintendo and other Japanese gaming companies, reports Japan’s Kyodo news agency. This decision aligns with Saudi Arabia’s efforts to boost its entertainment sector. It is part of the Kingdom’s broader strategy to diversify its economy and reduce reliance on oil.
PIF’s Current Investments and Future Plans
Prince Faisal bin Bandar bin Sultan Al Saud, vice chair of the PIF’s gaming arm, disclosed the potential increase in an interview with Kyodo News. The PIF already holds 8.58% of Nintendo and has stakes in Nexon, Capcom, and Koei Tecmo.
Speaking at the Tokyo Game Show, Prince Faisal emphasized that PIF is not in a hurry to raise its stakes. He mentioned the importance of maintaining positive communication with their Japanese partners, noting, “We don’t want to rush into anything.”
Savvy Games Group and Synergies
PIF is transferring shares from these Japanese gaming companies to its gaming entity, Savvy Games Group, to create synergies. Savvy sees opportunities in localizing video games in cooperation with Japanese firms, using intellectual property from popular franchises.
Japanese companies like Nintendo and Square Enix are also leveraging their intellectual property for greater profitability, expanding into areas like merchandise, animation, and movies. Nintendo’s release of “The Super Mario Bros. Movie” was a massive success, highlighting the potential for further collaboration.
Vision 2030 and Entertainment Expansion
Crown Prince Mohammed bin Salman, who chairs Savvy Games, has prioritized entertainment investments as part of Saudi Arabia’s Vision 2030. The Kingdom is building Qiddiya, an entertainment city near Riyadh, which will feature a Formula One track and esports facilities.
This focus on entertainment is a key element of Saudi Arabia’s long-term strategy to diversify its economy. The PIF’s increasing stakes in Japanese gaming companies reflect this commitment to expanding the entertainment sector globally, while maintaining strong partnerships with international players.
