Nintendo has kept players interested in its aging line of Switch consoles with key games featuring characters like “Super Mario” and “Zelda.”
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Saudi Arabia’s Public Investment Fund (PIF) has reduced its stake in Nintendo, a day after reports that a senior executive at the kingdom’s massive sovereign wealth fund said it was considering increasing its stake in the company.
PIF lowered its stake in the Japanese video game giant to 7.54% from 8.58% previously, according to a Japanese regulatory filing on Tuesday.
A day earlier, a report in local media outlet Kyodo News cited comments made in September by Prince Faisal bin Bandar bin Sultan Al Saud, vice chairman of PIF’s gaming subsidiary Savvy Games Group. Asked about the possibility of increasing stakes in Nintendo and other Japanese gaming companies, he said: “It’s always a possibility,” adding that partners’ agreement was crucial.
“It’s important to keep the communication going so that we get there in the right way. We don’t want to rush things,” he added.
On Monday, Nintendo shares rose 4.4% after the Kyodo News report. Shares fell slightly on Tuesday, although news of PIF’s stake broke shortly after the close.
Saudi Arabia has invested billions of dollars in the gaming industry at home and abroad in recent years, aiming to become an esports and gaming hub as part of the country’s “Vision 2030” plan, which aims to reduce the country’s heavy reliance on oil. modernize and diversify the Saudi Arabian economy. Saudi Arabia’s Crown Prince Mohammed bin Salman is also the chairman of Savvy Games Group.
Nintendo has been grappling with a slowdown in the console gaming market and aging products. Its flagship Switch hybrid console is its best-selling product ever, with global sales of 143.4 million units. Seven years ago, it lost some of its luster as gamers switched to more advanced machines from the likes of Microsoft and Sony.
The awards for the Esports World Cup will be presented at the opening ceremony in Riyadh, Saudi Arabia, on July 2, 2024.
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In the company’s first fiscal quarter ended June 30, Nintendo reported a 46% year-over-year decline in sales of its Switch game console. The company shipped 2.1 million units in the three months, down from 3.91 million units a year ago.
The market is now watching to see what products the company will release next. In May, Nintendo confirmed that it would announce a successor to its Switch this fiscal year, but did not provide any further details on how it would look or reveal any specifications.
