Nintendo has kept players interested in its Switch console series for years by using key games featuring characters like Super Mario and Zelda.
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Saudi Arabia’s Public Investment Fund (PIF) has cut its holding in Nintendo Co., a day after reports that the mammoth sovereign wealth fund’s chief executive said he was considering increasing his stake.
PIF reduced its public holding of the Japanese video game maker to 7.54% from 8.58% previously, according to a Japanese official filing.
Prince Faisal bin Bandar bin Sultan al-Saud – vice chairman at Savvy Games Group, PIF’s sports-focused subsidiary – was asked about a possible stake increase in Nintendo and other Japanese gaming companies while attending the Tokyo Game Show in late September.
“It’s always possible,” Prince Faisal told local outlet Kyodo News at the time, while adding that the approval of his partners is very important, saying: “It’s important to keep communication going to get there in the right way. I don’t want to rush anything.”
On Monday, Nintendo shares recorded a 4.4% gain following the publication of the report that day.
Saudi Arabia in recent years has poured billions of dollars into the sports sector, at home and abroad, aiming to become a sports and e-sports hub as part of the kingdom’s Vision 2030 plan to develop and diversify the Saudi economy that is heavily dependent on oil. . The Saudi Crown Prince, Mohammed bin Salman, is also the chairman of Savvy Games Group.
Nintendo has been facing a slow console gaming market and an aging product in the form of its flagship Switch hybrid console – its best-selling gear, which has sold 143.4 million units worldwide. At seven years old, it has lost its luster, as gamers look to more advanced devices from the likes of Microsoft and Sony.
The Esports World Cup trophy is displayed during the opening ceremony in Riyadh, Saudi Arabia on July 2, 2024.
Mohammed Saad Anadolu | Getty Images
The sales performance of Switch devices has also declined slightly in recent years due to a mix of reasons including gamers coming out of the Covid-19 lockdown and the arrival of new home gaming consoles, such as Xbox Series X and PlayStation 5.
In the company’s first fiscal quarter ending June 30, Nintendo reported a 46% year-over-year decline in Switch console sales. The company shipped 2.1 million units in the three-month period, down from 3.91 million a year ago.
Markets are now looking at what the company will release next. In May, Nintendo confirmed that it will announce a successor to its Switch product this fiscal year, without giving more details about what it will look like or revealing any details.
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