Saudi Arabia increases stake in Nintendo again

Saudia Arabia’s public investment fund has become the biggest Nintendo shareholder outside of the company’s own stocks.

Saudia Arabia’s Public Investment Fund (PIF) has once again increased its stake in Nintendo, becoming the biggest shareholder of Nintendo outside of the company’s own stocks.

According to Bloomberg, the PIF purchased another set of shares in Nintendo recently, increasing its ownership of the company from 6% at the start of 2023 to a total of 8.3%. Saudi Arabia previously increased its stake in the company in January, from 5% up to 6%.

The further investment in Nintendo is part of a growing attempt by the country to diversify its economy and reduce its dependence on oil on the global market. The PIF has also previously invested in Chinese media giant Tencent, adding to its existing collection of shares in Activision Blizzard, Capcom, EA, Nexon, Take-Two, and Koei Tecmo.

The country’s investment fund also took over two of the world’s leading esports tournament organisers in 2022, ultimately merging them into a group called ESL FACEIT. Esports fans reacted negatively to the news online, accusing Saudi Arabia of using gaming tournaments to distract from its human rights abuses.

Controversial Saudi Crown Prince Mohommaed bin Salman has been a strong proponent of investment in video games. Photo: Rungroj YONGRIT / POOL / AFP

Many have pointed to its continued buying of shares in Nintendo as an example of this — Nintendo is a family-friendly company at its core, and its values and products stand at odds with Saudi Arabia’s long history of violence and oppression.

Many gamers have also expressed concern that the country could use its voting power at these companies to influence the decision-making process over the content included in some games.

The Last of Us Part 2 was banned in Saudi Arabia due to its LGBT+ characters and romances, while other games such as games in the God of War series were banned for violence and depictions of religious content outside of the kingdom’s Islamic state religion.

Saudi Arabia is likely to continue investing in the gaming industry, and some analysts believe the country will continue to increase its stake in Nintendo. Bloomberg quotes industry consultant Serkan Toto, who said they “wouldn’t be surprised if it continues to increase its stake in Nintendo going forward”.

Some God of War games have been banned in Saudi Arabia for their violence. Picture: Sony Interactive Entertainment

The news comes after Nintendo held its February Direct presentation, which was filled with highlights on the games the company is releasing this year. The presentation included new information for the upcoming Zelda game, a release date for Pikmin 4, and a surprise release of a long-awaited game.

Written by Oliver Brandt on behalf of GLHF.