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Saudi wealth fund eyes raising stakes in Nintendo, other game firms

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Kyodo News

Saudi Arabia&#x27;s sovereign wealth fund is considering raising its stakes in Nintendo Co. and other Japanese gaming companies to strengthen the country&#x27;s entertainment business in a shift from its oil-dependent economy, the vice chairman of the fund&#x27;s gaming entity said.The Public Investment Fund is in the process of transferring shares it holds in the Japanese companies to its gaming company, Savvy Games Group, to create greater synergies, Prince Faisal bin Bandar bin Sultan Al-Saud, the company&#x27;s vice chair said in a recent interview with Kyodo News.&quot;There are always opportunities,&quot; he said in the interview held on the sidelines of the Tokyo Game Show last week, referring to possible additional investment.PIF owned 8.58 percent of Nintendo, the developer of the smash-hit Super Mario Bros. video game series, and 8.97 percent of Koei Tecmo Holdings Co., according to the companies&#x27; documents filed with the Finance Ministry in June. The fund has also taken stakes in game software developers such as Nexon Co. and Capcom Co.The fund is also considering buying shares in other Japanese gaming companies in the future, the vice chair said.Saudi Arabia in recent years has been ramping up investment in entertainment businesses, such as games and animation, as Crown Prince Mohammed bin Salman, who also serves as Savvy&#x27;s chair, seeks to shift its economic focus away from the volatile oil industry.As part of such efforts, the country is building an entertainment city named Qiddiya southwest of Riyadh, which will include a stadium, Formula One track, esports facilities and the world&#x27;s first theme park devoted to the globally popular anime and manga series &quot;Dragon Ball.&quot;Savvy Games sees a business opportunity in promoting localization of video games in cooperation with Japanese partners, such as by using their intellectual property, the vice chair said.Japanese companies are seeking to leverage their intellectual property to diversify profit sources, such as merchandise and animation featuring their popular game characters.Nintendo released &quot;The Super Mario Bros. Movie&quot; last year based on its popular game characters that proved to be a blockbuster success. Square Enix Co. has also made movies based on its famous &quot;Final Fantasy&quot; series.The prince suggested, however, that the fund has no intention of raising its stakes without its partners&#x27; consent.&quot;It&#x27;s important to keep the communication going so you get there in the right way,&quot; he said. &quot;We don&#x27;t want to rush into anything.&quot;

Saudi Arabia's sovereign wealth fund is considering raising its stakes in Nintendo Co. and other Japanese gaming companies to strengthen the country's entertainment business in a shift from its oil-dependent economy, the vice chairman of the fund's gaming entity said.

Saudi Arabia's sovereign wealth fund is considering raising its stakes in Nintendo Co. and other Japanese gaming companies to strengthen the country's entertainment business in a shift from its oil-dependent economy, the vice chairman of the fund's gaming entity said.