Saudi Arabia reduces its stake in Nintendo

In a surprising turn of events, Saudi Arabia's Public Investment Fund has decreased its stake in Nintendo, contradicting recent speculation that it would boost its investment in the company. According to a regulatory filing in Japan, the PIF's stake in Nintendo has decreased from 8.58% to 7.54%, still maintaining its position as one of the company's largest shareholders. The fund initially acquired a 5.01% stake in Nintendo in May 2022. This development contradicts reports that emerged earlier, suggesting Saudi Arabia would increase its stake in Nintendo, which were based on an interview with Prince Faisal bin Bandar bin Sultan al-Saud, vice chairman of Savvy Games Group. The prince had stated that increasing holdings in video game companies was 'always a possibility.' Over the years, the PIF has invested in several gaming companies, including Capcom, Nexon, and Koei Tecmo, while Savvy holds a $1 billion stake in Embracer Group. Earlier this year, Nintendo's shares reached a record high due to speculation about potential investment from Saudi Arabia and anticipation for the Switch 2.