Saudi Arabia's PIF reduces stake in Nintendo after report said it was considering decrease.

• The Saudi Arabia's Public Investment Fund (PIF) reduced its stake in Nintendo Co. following a report that a senior executive at the kingdom's large sovereign wealth fund was considering increasing its investment.
• According to a regulatory filing, the PIF decreased its stake in the Japanese video game giant from 8.58% to 7.54%.

The Saudi Arabia's Public Investment Fund (PIF) reduced its stake in Nintendo Co. following a report that a senior executive at the kingdom's large sovereign wealth fund was considering increasing its investment.

According to a Japanese regulatory filing on Tuesday, the PIF decreased its stake in the Japanese video game giant from 8.58% to 7.54%.

A report in Kyodo News cited comments by Prince Faisal bin Bandar bin Sultan al-Saud, vice chairman at Savvy Games Group, the PIF's gaming-focused subsidiary, made in September. He was asked about a potential increased stake in Nintendo and other Japanese gaming companies and said: "It's always a possibility," adding that its partners' consent is paramount.

To ensure that you arrive at your destination correctly, it's crucial to maintain open communication. We must avoid hasty decisions.

On Monday, Nintendo shares rose 4.4% after a Kyodo News report. However, shares dropped slightly on Tuesday, despite the release of news about the PIF shareholding shortly after market closure.

The gaming industry has received significant investment from Saudi Arabia in recent years, with the aim of establishing the kingdom as a global hub for e-sports and gaming, as part of the Vision 2030 plan to transform the heavily oil-dependent economy. The Saudi Crown Prince, Mohammed bin Salman, is also the chairman of Savvy Games Group.

The Switch hybrid console, Nintendo's best-selling product, has been losing popularity among gamers due to its age and the availability of more advanced consoles from Microsoft and Sony.

The sales of Switch devices have been declining recently due to various factors, including the release of new home gaming consoles and gamers emerging from Covid-19 lockdowns.

Nintendo reported a 46% decline in sales of its Switch console in the company's fiscal first quarter ending June 30. The firm shipped 2.1 million units in the three-month period, compared to 3.91 million units a year ago.

The company's next product release is being closely monitored by markets, as Nintendo confirmed in May that it would reveal the successor to its Switch product this fiscal year, without providing any specifics on its appearance or technical specifications.