Saudi Public Investment Fund seeks to invest in video game companies by acquiring stakes in major companies due to the importance of the video game sector and the substantial revenues it generates. For example, in February 2023, the Public Investment Fund increased its stake in Nintendo to 8.3%.
Currently, the Saudi Sovereign Wealth Fund is considering raising its stakes in Nintendo and other Japanese gaming companies to enhance the entertainment industry in the country, moving away from the oil-dependent economy, as stated by the Deputy Chairman of the gaming sector under the fund.
Prince Faisal Bin Bandar Bin Sultan Al Saud, Deputy Chairman of the Public Investment Fund, mentioned in a recent interview with the Kyodo news agency that the Public Investment Fund is in the process of transferring its shares in Japanese companies to its gaming subsidiary, Savy Gaming Group, to create more synergy.
He also mentioned during the Tokyo Game Show last week, “There are always opportunities,” hinting at potential additional investments.
The Public Investment Fund owns 8.58% of Nintendo, the developer of the popular video game series Super Mario Bros which has seen tremendous success, and 8.97% of Koei Tecmo Holdings, according to documents submitted to the Ministry of Finance in June. The fund has also acquired stakes in software developers such as Nexon and Capcom.
The Deputy Chairman mentioned that the fund is also considering buying shares in other Japanese gaming companies in the future. In recent years, Saudi Arabia has been increasing investments in the entertainment sector, such as games and animation, as Crown Prince Mohammed bin Salman, who is also the Chairman of Savy Gaming Group, aims to diversify the country’s economy away from the volatile oil industry.
As part of these efforts, the country is building a leisure city named Qiddiya southwest of Riyadh, which will include a stadium, a Formula 1 track, facilities for e-sports, and the world’s first entertainment city dedicated to the globally famous anime and manga series “Dragon Ball.”
The Deputy Chairman of Savy Gaming Group mentioned that the company sees a business opportunity in promoting localization of video games in collaboration with Japanese partners using their intellectual properties. Japanese companies aim to leverage their intellectual property to diversify revenue sources, such as merchandise and animated shows featuring their popular game characters.
However, the Prince noted that the fund does not intend to increase its stakes without the approval of its partners. He said, “Maintaining continuous communication is important to reach consensus in the right way.” “We do not want to rush into anything.”
Saudi wealth fund eyes raising stakes in Nintendo, other game firmshttps://t.co/MAlFJeykZv#Japan #Nintendo #SaudiArabia
— Kyodo News | Japan (@kyodo_english) October 5, 2024