In the context: Nintendo has become the latest gaming company to attract investment from the Saudi Arabian government. While this may alarm some after the near-full acquisition of SNK, this is just one of several other Saudi investments related to gaming.
This week Saudi Arabia Public Investment Fund (PIF) bought five percent Nintendo. This makes it the fifth largest shareholder in Nintendo, according to Bloomberg estimates. Nintendo said it only learned of the investment from news reports and declined to comment on individual shareholders.
The PIF is a $500 billion fund that is part of Saudi Arabia’s domestic economic policy. The oil-rich country wants invest over a trillion dollars in tech and other sectors by the middle of this decade. Video game companies are part of this plan.
PIF last year spent billions in Electronic Arts, Activision Blizzard and Take-Two Interactive stock and now owns a single-digit stake in each company. In January it acquired eSports group ESL Gaming, and in February it bought about five percent of Capcom and Nexon. Most famously, in the same month PIF took 96 percent SNK.
Saudi Arabia may be trying to learn from gaming companies to incorporate games into its significant domestic development ambitions. The PIF is part of the kingdom’s Vision 2030 plan, which also includes construction a city-state on the Red Sea called Neom. In February Neom ink deal with the MBC group to set up the first AAA gaming studio in the Middle East.
Credit: www.techspot.com /