PIF continues to trim stake in Japan’s Nintendo

The Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, has further reduced its holding Japanese gaming company Nintendo.

In the latest move, PIF cut its holding to 5.26 percent from 6.3 percent, the second reduction this month.

The fund lowered its stake to 6.3 percent from 7.5 percent on November 13.

The news comes despite comments from Prince Faisal bin Bandar Al Saud, vice chairman of Savvy Games Group, in October that PIF was exploring increasing its stakes in Japanese gaming companies to develop the kingdom as a global centre for gaming.

The fund had upped its stake in the Japanese company to 8.6 percent of Nintendo from 5 percent in May 2022.

The Japanese company’s profit dropped 60 percent year on year to 108.7 billion yen ($685 million) from April to September 2024 period, as sales fell 34 percent over the same period.

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Nintendo has been grappling with a slowing console gaming market and an ageing product in its flagship Switch hybrid console – its best-selling system ever, which sold 143.4 million units worldwide. 

In the company’s fiscal first quarter ending June 30, Nintendo reported a 46 percent year-on-year drop in sales of the Switch. They sold 2.1 million units in the three-month period, down from 3.91 million units a year ago.

The Saudi sovereign wealth fund also holds around 9 percent of Koei Tecmo Holdings.

In 2022, PIF purchased more than 5 percent stakes each in South Korea’s Nexon and Japan’s Capcom.