Saudi Arabia’s PIF Reduces Stake in Nintendo Following Speculation of Increasing Investment

Saudi Arabia’s Public Investment Fund (PIF) has reduced its stake in Nintendo Co., just a day after reports suggested the sovereign wealth fund might be considering increasing its investment in the Japanese video game giant.

According to a regulatory filing in Japan, the PIF trimmed its holdings from 8.58% to 7.54%.

This move followed a report by Kyodo News, which quoted Prince Faisal bin Bandar bin Sultan Al Saud, vice chairman of Savvy Games Group—the PIF’s gaming-focused subsidiary—indicating that increasing stakes in Nintendo and other Japanese gaming companies was “always a possibility.” However, Prince Faisal stressed the importance of maintaining strong partnerships and avoiding rushed decisions.

The initial reports had caused Nintendo shares to rise by 4.4% on Monday, though they dipped slightly following news of the reduced stake on Tuesday.

Saudi Arabia has been aggressively investing in the gaming industry as part of its Vision 2030 plan to diversify its economy away from oil dependence. The PIF has acquired stakes in multiple gaming companies, including Capcom, Nexon, and Koei Tecmo, and holds significant shares in US gaming firms such as Activision Blizzard and Electronic Arts.

Nintendo, currently facing challenges with its aging Switch console, has been preparing for its next hardware release. Meanwhile, the PIF remains one of Nintendo’s largest shareholders despite the recent reduction, as it continues to navigate its investment strategy in the gaming sector.

With input from CNBC, Video Games Chronicle, and Nintendo Life.