When you follow the world of business, it can seem like the Saudi Arabian government has its fingers in almost every pie. In recent years, they’ve used their Public Investment Fund (PIF), chaired by Saudi Crown Prince Mohammed bin Salman, to invest over $600 billion in assets worldwide, including multiple video game and entertainment companies.
In May 2022, PIF purchased a 5% stake in Nintendo. According to the latest report from Reuters, they’ve recently increased that stake to around 6%. This additional stake doesn’t give PIF close to a controlling share in the company. However, it does signal that the Saudi Crown Prince, who is the leader of the nation in all but name, sees an opportunity to capitalize on the impending release of the Super Mario Bros movie and the slate of games set to come out for the Nintendo Switch this year.
This investment isn’t the first time the Saudi Arabian government has invested in high-profile gaming companies. In April 2022, PIF became the majority shareholder in fighting game giant SNK and has also previously invested in companies like Capcom and Koei Tecmo. With the video game industry continuing to grow each year, this is fairly normal behavior for organizations seeking to diversify their portfolio.
The Saudi Crown Prince has reportedly been accused of using its investments in gaming and entertainment to distract the public from his government’s numerous human rights cases of abuse. Particularly with a company like Nintendo, which is known for its family-friendly titles such as Mario and Kirby, the association can be problematic.
On the same day that news of the PIF’s increased investment in the company broke, stocks in Nintendo fell around 1.8%. It is difficult to tell if this was a direct result of the Saudi government’s investment or due to normal fluctuations in a volatile market. The announcement of a large organization increasing its stake in the famously independent Nintendo might have spooked potential investors.
Published: Jan 12, 2023 04:36 am