Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), is reportedly considering expanding its 8.58 percent stake in Nintendo. This would mark another move in its strategy to diversify away from oil and strengthen its presence in gaming and entertainment. As reported by Kyodo News and VGC, PIF vice-chair Prince Faisal bin Bandar bin Sultan Al-Saud confirmed this at the Tokyo Game Show.

The PIF has been steadily increasing its influence in gaming, holding stakes in major companies such as Capcom, Nexon, Take-Two Interactive, Activision Blizzard, and Nintendo. The fund is now transferring these shares to its Savvy Games Group, a subsidiary designed to handle its gaming investments. In addition to these companies, PIF is interested in Electronic Arts (EA) and acquired a £840 million stake in Embracer Group in 2022. However, the PIF’s relationship with Embracer deteriorated earlier this year when it walked away from a $2 billion strategic partnership, which triggered a significant collapse in Embracer’s stock value.

Even industry icon Hideo Kojima raised eyebrows after meeting Prince Faisal bin Bandar last year, hinting at the growing influence of Saudi Arabia in the gaming world. The prince emphasized the importance of taking a measured approach to investments, stating, “We don’t want to rush into anything,” and stressed the need for continuous communication to ensure decisions are made thoughtfully.

Beyond gaming, the PIF has diversified into other entertainment sectors, including film and sports, and is involved in hosting events such as the Esports Olympic Games and the new Overwatch Champions Series (OWCS).

However, the PIF’s initiatives are not without controversy. Prince Mohammed bin Salman, who chairs the PIF, has been widely criticized for his role in the 2018 assassination of Washington Post journalist Jamal Khashoggi, as confirmed by the CIA. His leadership has also maintained Saudi Arabia’s poor human rights record, where homosexuality remains criminalized with punishments ranging from flogging to the death penalty. Despite these issues, Saudi Arabia continues to expand its influence in the global entertainment industry, with gaming being a key area of focus.