Saudi Arabia’s sovereign wealth fund is considering increasing its stake in Nintendo and other Japanese game companies in a bid to strengthen the country’s entertainment business as it moves away from an oil-dependent economy. This was revealed by the vice chairman of the entity.
The company’s vice chairman, Prince Faisal bin Bandar bin Sultan Al Saud, said the Public Investment Fund will transfer the shares of the Japanese company it holds to the company’s gaming company Saby Games Group in order to create greater synergies. He said he is proceeding with the process of transferring the property to . With Kyodo News.
“There’s always an opportunity,” he said in an interview on the sidelines of the Tokyo Game Show last week, referring to the possibility of additional investment.
Prince Faisal bin Bandar bin Sultan Al Saud, vice chairman of Saudi Arabia’s Savy Gaming Group, performs on the sidelines of the Tokyo Game Show in Chiba, near Tokyo, on September 26, 2024. He said this in an interview. (Kyodo News)
According to documents filed by the two companies with the Ministry of Finance in June, PIF held an 8.58% stake in Nintendo, the developer of the hit Super Mario Bros. video game series, and an 8.97% stake in Koei Tecmo Holdings. . The fund also invests in game software development companies such as Nexon and Capcom.
The fund is also considering purchasing stakes in other Japanese game companies in the future, the vice chairman said.
Saudi Arabia has increased investment in gaming, anime and other entertainment businesses in recent years as Crown Prince Mohammed bin Salman, who also chairs Savy, seeks to shift the economy’s focus away from the volatile oil industry.
As part of those efforts, the country is building an entertainment city called Qiddiya southwest of Riyadh, which will include a stadium, a Formula 1 track, an e-sports facility, and a space dedicated to the globally popular anime and manga series Dragon Ball. It will include the world’s first theme park. ”
The vice chairman said Savvy Games sees business opportunities in working with Japanese partners to promote the localization of video games, including by leveraging intellectual property.
Japanese companies are trying to diversify their revenue sources by leveraging intellectual property, such as commercializing popular game characters and making them into anime.
Last year, Nintendo released the “Super Mario Bros. Movie,” based on the company’s popular game characters, and it was a huge hit. Square Enix also produces movies based on the famous “Final Fantasy” series.
However, the prince indicated that the fund would not increase its stake without the consent of its partners.
“Continuing communication is key to getting to your destination in the right way,” he said. “We’re not going to rush into anything.”
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