The Saudi Prince, Mohammed ben Salmane (MBS), who presents himself as a long-time gamer, has just bought shares in Nintendo. The kingdom has been investing in the video game sector for several years. Since March 31, he has owned 5% of the capital of the Japanese firm, but says that this will have no impact on the company’s strategy.
A $600 billion investment fund
The Saudi leader, a controversial figure, is not his first attempt. Since the creation of Saudi Arabia’s public investment fund in 2017, the designated heir to the throne has sought to diversify the activities of his country, which is almost exclusively dependent on oil. For example, he is trying to persuade the iPhone manufacturer, Foxconn, to set up a factory on the territory to boost local industry.
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For now, the precious black gold is not yet exhausted and the kingdom remains one of the main suppliers. the wall street journal explains that the barrel of oil is at its highest price since the beginning of the reign of Prince Mohammed. This allows the investment fund to reach 600 billion dollars.
To obtain 5% of Nintendo’s capital, the country invested 3 billion dollars. Saudi Arabia claims not to seek to influence the strategy of the Japanese company. For the Saudi Prince, this is the logical continuation of his investment plan in the entertainment industry.
In February 2021, the oil power had already committed $ 3.3 billion to three of the largest American video game publishers: Activision-Blizzard, Electronic Arts and Take-Two. Beyond MBS’s passion for video games and Saudi Arabia’s economic diversification, it’s a way to get a foothold in an industry that fuels American soft power. Eventually, he could use this influence to defend the image of his country by conveying messages through the games or by including elements of Arab culture in them.
Video games and eSports, promising sectors for Saudi Arabia
On the Japanese side, Nintendo is not the first company affected by these investments. At the beginning of 2022, the fund bought 5% of the shares of the publisher Capcom. Since April, he has become the owner of the Japanese company SNK, a developer of fighting games, of which he owns 96% through his MiSK foundation. He also invested in the South Korean company, Nexon, which is very active in the mobile and PC games market.
Most of these video game players are the owners of strong licenses on the eSport scene. street fighter with Capcom, The King of Fighters for SNK or Super Smash Bros. at Nintendo. These acquisitions are in line with the strategy of the Saudi prince who founded the company Savvy Gaming Group with the aim of investing in video game competition.
Via this company, Saudi Arabia bought two major players in eSports in January: ESL, the largest league of professional players and FACEIT, a platform for connecting players. With these two structures, the country is positioning itself as an organizer of the biggest world eSport competitions.
MBS understood that the video game sector was going to grow, ideal for helping to fuel the economy of his kingdom. The Saudi prince could continue this type of investment, at the risk of seeing his influence in the video game industry have an impact at different levels, such as on the creative process.