Saudi Arabia’s Public Investment Fund (PIF) has lowered its stake in Nintendo Co., reducing its shareholding to 6.3% from 7.5%. This marks a recent shift in the fund’s investment priorities as it focuses on addressing domestic economic goals. The reduction follows a broader sell-off by the PIF since August, with over 17 million Nintendo shares sold by October.
Focus on Domestic Investments to Align with Saudi Vision
According to Bloomberg, this move aligns with Saudi Arabia’s strategic push toward domestic investments as budgetary pressures increase. The PIF, managing $930 billion in assets, aims to support the Kingdom’s Vision 2030, which emphasizes economic diversification. Shifting its focus, the PIF is adjusting its global investments to balance international ventures with domestic needs, reflecting the kingdom’s evolving financial strategy.
Kingdom’s Vision 2030 and Gaming Industry Aspirations
Despite these changes, PIF remains one of Nintendo’s major shareholders, signaling its long-term interest in gaming partnerships. Previously, the fund invested heavily in the global gaming industry, including stakes in Japanese and South Korean companies. As part of Vision 2030, Saudi Arabia hosted its first Esports World Cup in July and plans to host the Olympic Esports Games in 2025.
Nintendo’s Upcoming Console Launch and Market Adjustments
Nintendo, preparing to launch a new device amid slowing sales for its Switch console, may witness changes in its shareholder base. The PIF’s evolving priorities and the broader gaming industry landscape will likely influence Nintendo’s future. The gaming giant remains a key player globally, as it adjusts to a shifting market and the evolving strategies of major stakeholders like the PIF.
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