Game on: Nintendo shares surge as Saudi bets big on gaming

Nintendo’s stock surged by 3.9% after a senior executive from Saudi Arabia’s Public Investment Fund (PIF) revealed that the Kingdom is exploring the possibility of increasing its stake in Japanese gaming companies. This marks a significant move in Saudi Arabia’s broader strategy to become a global force in the video game industry.

The stock reached its highest point in over a week, outperforming the market, following a report from Kyodo News that the PIF, which already holds substantial stakes in major gaming companies, is considering further investments in Nintendo and its competitors.

Prince Faisal bin Bandar, Vice Chairman of PIF’s Savvy Games Group, stated that any increase in holdings would ideally have the endorsement of the companies themselves.

Saudi Arabia’s ambitions go beyond mere investments. The Kingdom is betting big on the gaming industry as part of its Vision 2030 plan to diversify its oil-reliant economy.

With a $38 billion investment into the gaming sector, the country aims to become a major hub for video games and e-sports.

Alongside Nintendo, Nexon, another gaming company in which the PIF holds a stake, saw its shares rise by 3% in Tokyo on Monday.

Currently, the PIF is one of Nintendo’s largest shareholders, holding an 8.6% stake, according to Bloomberg. The fund has also poured billions into other gaming giants, including Tencent, Activision, and Kakao Entertainment.

In a more creative endeavor, a PIF-backed developer is constructing a theme park near Riyadh featuring characters from Dragon Ball, the iconic Japanese manga and anime series.

This focus on gaming aligns with Saudi Arabia’s drive to diversify and become a global entertainment hub, with the Kingdom looking to leverage both its financial muscle and strategic partnerships to establish itself as a key player in the rapidly expanding video game industry.