Saudi Arabia is considering increasing its stake in Nintendo as part of its growing investment in the video game industry.
The country, which has repeatedly come under fire for its human rights record, is already the largest external stakeholder in the Japanese gaming firm. As of this year, the Gulf nation’s Public Investment Fund (PIF) owns an 8.3 per cent stake in Nintendo after increasing its position last year.
Now, it’s exploring an even bigger stake in the home of Mario and Zelda, according to local Japanese media.
The Saudi government has been making major moves in the gaming industry in its efforts to diversify the country’s oil-dependent economy.
News of the possible investment comes on the heels of the inaugural Esports World Cup, a glitzy video games tournament held in the Saudi capital of Riyadh.
In return, Nintendo (which is readying a new console) will be able to court more gamers in the Middle East, a rapidly growing market for video games, with Saudi Arabia standing out as the largest player in the region. Shares in Nintendo shot up on the back of the news, rising by almost four per cent.
According to Kyodo News, the PIF’s vice-chair, Prince Faisal bin Bandar, confirmed plans to strengthen its gaming and entertainment businesses with investments in Nintendo and its peers.
The fund already owns shares in several top gaming companies - including China’s Tencent, Capcom, GTA publisher Take-Two Interactive, and Activision Blizzard - which it is currently transferring to its Savvy Games Group subsidiary.
For its part, Nintendo originally denied any knowledge of Saudi Arabia’s first investment in its company, claiming it was unaware of the transaction until it heard about it through subsequent news reports.
Saudi Arabia’s push into gaming is being spearheaded by its leader, Crown Prince Mohammad bin Salman.
Despite his attempts to improve its international image through sports and entertainment investments, the country’s human rights situation remains dire under his de-facto rule.
The death penalty is still enforced in Saudi Arabia, with the government carrying out 196 executions in 2022, the highest number in three decades. It has also come under international scrutiny for its widespread discrimination against women, banning of same-sex relationships, and exploitation of migrant workers.
The investment in Nintendo is significant, as the company has played a pivotal role in bringing gaming to the mainstream in the West with its colorful, family-friendly titles.
More recently, the monstrously-popular Nintendo Switch has revolutionised the industry by bridging the gap between mobile and console games. Its success has single-handedly revived handheld gaming and further cemented its position as a trendsetter.
