Saudi Arabia invests in Nintendo, a move that worries the entire industry

© Universal pictures

While Ubisoft is in the midst of a financial meltdown with rumors of a buyout by a foreign group, another announcement has fallen like a bolt from the blue sky of Kyoto. The Public Investment Fund (PIF), sovereign wealth fund Saudi Arabia's largest bank, is considering increasing its stake in Nintendo beyond the 8.58% it already holds. This news has shaken the world of video games, raising questions about the future of the iconic Japanese company and the motivations of the oil kingdom.

The Saudi Kingdom, the New Gaming Giant ?

The PIF's appetite for the video game industry is not new. Capcom, Nexon, Take Two Interactive, Activision Blizzard… The list of publishers in which the fund has invested is growing year by year. The strategy is part of a broader plan to diversify the Saudi economy, which has long been dependent on oil.

Prince Faisal bin Bandar bin Sultan Al-Saud, vice-president of the PIF, makes no secret of his ambitions: “There are always opportunities”, he declared at the Tokyo Game Show. But he tempers it: “We don't want to rush anything.” This apparent caution hardly reassures observers, who see in these investments a political maneuver as much as an economic one.

Between ” sportswashing ” and soft power

© Universal Studios/Nintendo

Saudi Arabia is not content to invest in companies in the sector. The kingdom is multiplying initiatives to establish itself as a major player in e-sports. The organization of the Esports World Cup in Riyadh and the obtaining of the e-sports Olympic Games for 2025 are evidence of this.

These events are part of the “Vision 2030” strategy led by Crown Prince Mohammed Ben Salmane. The objective? To diversify the economy, of course, but also to improve the country's image on the international stage. A practice described as “sportswashing” by its detractors, who accuse the kingdom of using sports and entertainment to cover up its human rights violations.

Gaming industry faces ethical dilemma

The Saudi offensive places video game players in a delicate dilemma. On the one hand, the PIF’s massive investments offer enticing growth prospects. On the other, the association with an authoritarian regime raises ethical questions.

The case of Nintendo crystallizes these tensions. A family business with strong values, the Japanese giant finds itself at the heart of a geopolitical issue. How to reconcile the influx of capital with the preservation of its identity and independence ?

This problem is not limited to Nintendo. The entire video game industry is faced with this questioning. Between economic opportunities and moral responsibility, the sector is navigating troubled waters.

• Saudi sovereign wealth fund plans to increase stake in Nintendo, raising concerns in video game industry
• This strategy is part of an economic diversification plan by Saudi Arabia, accused of practicing “sportswashing”
• The gaming industry faces a dilemma between financial opportunities and ethical considerations in the face of Saudi investments

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