https://asia.nikkei.com/Business/Markets/Saudi-sovereign-wealth-fund-increases-Nintendo-stake-to-6
Saudi Arabia’s sovereign wealth fund has boosted a stake in Nintendo to 6.07%, according to a filing made in Tokyo Thursday, as the oil-rich kingdom increases a presence in the gaming industry.
The Public Investment Fund (PIF) acquired a 5.01% share in the Kyoto-based game company in May last year. Both moves were made for investment purposes, according to the filings.
Saudi Arabia’s royal family, including Prime Minister and Crown Prince Mohammed bin Salman, are known to be fans of Japanese games and anime. The kingdom has been attempting to foster entertainment and other industries as it seeks to break away from a dependence on oil.
“In Saudi Arabia, the market for subcultures like games and anime is gradually expanding. One aim of the acquisition of shares may be to gain knowledge about the development of the content industry,” said Hideki Yasuda, a senior analyst at Toyo Securities. PIF has also acquired stakes in major game companies such as Capcom, Activision and Electronic Arts.
Yasuda said PIF likely saw this as a good time to increase its Nintendo stake as the company’s stock price had been falling.
Nintendo has long enjoyed enthusiastic support from consumers, and its flagship Switch console successfully capitalized on at-home gaming demand during the coronavirus pandemic. The console has several high-profile titles slated for release this year, making some market players to view the company as a promising investment option.