Saudi Arabia's Gaming Ambitions Grow as Nintendo Becomes Key Investment

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Saudi Arabia’s increasing investment in the gaming industry, particularly in Nintendo, is a significant move that reflects the country's ongoing strategy to diversify its economy and move away from nearly complete dependency on oil. With the Public Investment Fund (PIF) acquiring a nearly 10% stake in Nintendo, Saudi Arabia has become the company's largest external shareholder, demonstrating its ambition to expand its global influence in entertainment. This follows a broader pattern of investment in the gaming sector, with Saudi Arabia also holding significant shares in major companies like EA, Capcom, and Nexon.

The Saudi government’s focus on the gaming industry is part of Crown Prince Mohammed bin Salman’s Vision 2030, a plan to move the country away from its traditional oil-dependent economy toward new sectors like entertainment, tourism, and technology. Gaming has been identified as a major avenue for growth due to its increasing global influence and financial potential. By investing billions into gaming, Saudi Arabia is positioning itself as a future hub for game development, esports, and gaming culture by 2030.

One of the major players in this expansion is Savvy Games Group, a Saudi-owned company actively investing in various areas of the gaming ecosystem, including publishing and esports. This group has announced ambitious plans to make Saudi Arabia a global center for gaming, with large-scale investments expected to continue.

The Tokyo Game Show 2024 featured an interview with Prince Faisal bin Bandar bin Sultan Al-Saud, who indicated that Saudi Arabia’s growing stake in Nintendo is likely to increase. The Prince confirmed that future investments would be made in close collaboration with the Japanese company, ensuring that the partnership remains positive. Following this announcement, Nintendo’s stock surged nearly 4%, highlighting the economic impact of this relationship.

The Prince also emphasized that the primary goal of these investments is not to influence the content or direction of game development. However, concerns over content censorship could arise as Saudi Arabia has imposed restrictions on some gaming titles in the past. For example, games like Spider-Man 2 have been censored ahead of release in Saudi Arabia due to cultural sensitivities.

Saudi Arabia’s gaming ambitions are not limited to Nintendo. The country has also acquired substantial stakes in other gaming companies, holding around 10% of Nexon, 5% of Capcom, and 9% of Electronic Arts (EA). These moves are part of a broader pattern of Saudi investments in global companies across various entertainment sectors. Although there is no direct evidence that these investments will lead to changes in game content, the growing ties between Saudi Arabia and major gaming companies could lead to shifts in how these companies engage with Middle Eastern markets.

Saudi Arabia’s commitment to becoming a global leader in gaming is also evident in its plans to host the inaugural Olympic esports games in 2025. This event will bring further attention to the country's involvement in the gaming industry and is expected to strengthen its ties with major gaming companies. Hosting such a high-profile event is part of the broader goal of establishing Saudi Arabia as a gaming and entertainment hub.

2025 could be a defining year for Saudi Arabia in the gaming world, with the anticipated launch of Nintendo’s next-generation console, often referred to as the “Switch successor,” and the first-ever Olympic esports Games. These milestones will provide an opportunity for Saudi Arabia to showcase its growing role in the global gaming ecosystem.

As Saudi Arabia solidifies its position as Nintendo’s largest outside shareholder, the relationship between the two entities will likely continue to evolve. While the country has yet to exert any influence on game content or development, the size of its investment could give it a more prominent role in Nintendo’s business decisions moving forward. Investors and analysts alike will be watching to see how this partnership develops, particularly as the gaming industry continues to grow and evolve.