Saudi Arabia’s sovereign wealth fund intends to boost its stakes in Nintendo and other Japanese gaming firms to diversify its economy away from oil. The fund is realigning its holdings through Savvy Games Group to foster collaboration, while also investing in massive entertainment projects like Qiddiya, under Crown Prince Mohammed bin Salman’s vision for economic transformation.
Saudi Arabia’s sovereign wealth fund is contemplating increasing its investments in Nintendo Co. and various other Japanese gaming firms, as part of a strategy to enhance its entertainment sector and diversify from its reliance on oil revenue. Prince Faisal bin Bandar bin Sultan Al-Saud, the vice chairman of the Public Investment Fund’s gaming arm, Savvy Games Group, disclosed these intentions in a recent interview with Kyodo News during the Tokyo Game Show. As part of this initiative, the fund is in the process of transferring its stake in Japanese gaming firms to Savvy Games Group to foster synergies between the entities. The Public Investment Fund currently holds an 8.58 percent stake in Nintendo, renowned for the immensely successful Super Mario Bros. franchise, and an 8.97 percent stake in Koei Tecmo Holdings. The fund is further invested in game developers such as Nexon Co. and Capcom Co., and it is exploring additional opportunities for investment in other Japanese gaming companies in the foreseeable future. In alignment with Crown Prince Mohammed bin Salman’s vision for economic diversification away from oil dependence, the kingdom has significantly accelerated investments in the entertainment sector, which encompasses gaming and animation. An integral part of this strategy involves the development of an entertainment metropolis, Qiddiya, located southwest of Riyadh. Qiddiya is envisioned to house a stadium, a Formula One racetrack, esport venues, and the world’s first theme park dedicated to the globally celebrated anime and manga series “Dragon Ball.” Savvy Games Group is particularly focused on the localization of video games alongside Japanese partners, intending to leverage their intellectual property for enhancing business opportunities. Japanese companies are increasingly inclined to utilize their intellectual properties as a means of diversifying revenue streams, seen recently with Nintendo’s successful foray into film with “The Super Mario Bros. Movie,” and Square Enix’s adaptations of the “Final Fantasy” series into film.
The Public Investment Fund of Saudi Arabia is seeking to expand its foothold in the international gaming market, specifically by increasing its equity investments in well-known Japanese gaming companies. Historically reliant on oil revenues, the Saudi economy has been shifting its focus toward entertainment and diversified investments under the leadership of Crown Prince Mohammed bin Salman. The gaming sector is a strategic focus of this diversification, as the kingdom positions itself to be a center for entertainment in the Middle East. Notably, this involves substantial investments and the creation of large-scale entertainment projects like Qiddiya.
In summary, the Saudi Public Investment Fund is actively looking to enhance its investments in the Japanese gaming industry, focusing on major players like Nintendo and Koei Tecmo Holdings as part of a broader strategy to pivot the economy away from oil dependency toward a more diverse entertainment landscape. The planned establishment of Qiddiya and collaborations with Japanese gaming companies further illustrate the kingdom’s commitment to enriching its entertainment sector. As indicated, future investments will be pursued with careful communication and strategic partnership consent.
Original Source: english.kyodonews.net
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