Nintendo shares soar 4.44% after Saudi Sovereign Wealth Fund hints at further investment in Japan’s gaming sector as part of its Vision 2030 strategy
Nintendo shares rose sharply on Monday, with a notable 4.44% increase, following reports that Saudi Arabia’s Public Investment Fund (PIF) is considering expanding its stake in the Japanese gaming giant. The rise came after comments from Prince Faisal bin Bandar bin Sultan, vice-chair of Saudi Arabia’s Savvy Games, suggested that the fund may be looking to build upon its current 8.6% share in Nintendo.
The PIF’s investment in Nintendo is part of a broader $38-billion initiative by Saudi Arabia to diversify its economy away from oil and into gaming and technology sectors. This investment push is central to Crown Prince Mohammed bin Salman’s Vision 2030 programme, which seeks to transform the kingdom’s economic landscape.
In addition to its stake in Nintendo, Saudi Arabia has also made significant investments in other prominent gaming companies. These include Capcom, the creator of Resident Evil, as well as gaming giants like Activision Blizzard, Electronic Arts, and Scopely, the US-based mobile games company responsible for Monopoly Go!
Embed from Getty Images“There are always opportunities,” Prince Faisal said in an interview with Kyodo News, hinting at the possibility of further investments in the gaming space. He stressed the importance of maintaining good relationships with the companies involved, emphasising that the fund would not increase its stakes without the consent and collaboration of the firms. “It’s important to keep the communication going so you get there in the right way,” he explained. “We don’t want to rush into anything.”
Nintendo, one of Japan’s most iconic gaming companies, has seen steady growth in recent years, buoyed by strong sales of its Switch console and popular franchises such as The Legend of Zelda and Mario Kart. Monday’s share surge brought the company’s stock to 8,087 yen ($54.48), further cementing its position as a key player in the global gaming market.
Saudi Arabia’s ambitions in the gaming industry are expansive. The country aims to establish 250 gaming companies and studios by 2030, generate 39,000 jobs related to gaming, and position itself among the top three nations for professional gamers per capita. A major goal for the kingdom is to produce a high-profile “AAA” game by 2030, a target that underscores its determination to become a global hub for gaming innovation and talent.
In recent years, Savvy Games, a subsidiary of the PIF, has been at the forefront of Saudi Arabia’s gaming strategy. The company has already acquired esports organiser ESL Gaming and gaming platform FaceIt. Additionally, Riyadh hosted the 2023 eSports World Cup, a major event that saw 2,500 participants compete for a staggering $60 million in prize money.
Prince Faisal, in a previous interview with AFP in May, spoke of the kingdom’s strategic approach to the gaming industry. “There’s a lot we want to do to get it done and to reach our targets by 2030,” he said. “But we also want to make sure that we are taking the time to study things, to look at things. And make sure we’re making the right steps and not just throwing cash out there to see what hits.”
This measured approach reflects Saudi Arabia’s long-term commitment to becoming a global leader in the gaming space. By continuing to invest in established companies like Nintendo and fostering the development of its own gaming ecosystem, the kingdom is positioning itself as a serious contender in the multi-billion-dollar global gaming industry.
With more investments likely on the horizon, the gaming world will be watching closely as Saudi Arabia continues its push into this vibrant and fast-growing market. The potential for further collaboration between the kingdom and major gaming companies signals an exciting future for both the industry and the broader Vision 2030 programme.
