The video game industry is a multi-billion dollar enterprise, and it’s been that way for a long time now. Between Microsoft, Sony, and Nintendo, there’s plenty of money going around both internally to make games and externally to buy them. That’s why many would argue that in spite of recent failures within the industry, it’s still a wise investment to have a stake in certain companies. It’s not the “Fall of 83” just yet. However, one small piece of news has many people intrigued, and it involves a nation you wouldn’t expect to be in the video game industry in any way: Saudi Arabia.
For those who don’t pay attention to the “global scale,” Saudi Arabia has been spending years trying to “rebrand itself” as more than “just an oil nation.” They’ve been overhauling their cities to be more akin to tourist destinations, including building luxury hotels, massive sports complexes, lifting bans on various things like music, movies and beyond, and even investing in video game companies. Specifically for this piece, they have invested in Nintendo in the past.
However, a new report by The Edge suggests that Saudi Arabia is once again loosening its hold on the company. Previously, their stake was about 8.5%, but now, it’s down to 6.3%.
If you look at this from a “financial perspective,” you might believe that this is a sign that the country doesn’t have faith in what The Big N is bringing to the table in the next year. However, that directly contradicts the fact that the Switch 2 could be announced very soon and that the next console is the most-anticipated thing in the gaming industry by far. Thus, it wouldn’t make sense that an entity as wealthy as Saudi Arabia would lessen its grip when the stock becomes more valuable.
However, it should be noted that while the country is “overhauling its image,” many of its more controversial elements are still in place. Elements that directly conflict with the image that Nintendo showcases at times. Thus, they could be lessening the stock to “get more distance” between them, while still keeping some stock so that they can make money from other ventures.
Yeah, it’s a complicated topic, but that’s the nature of these things when powerful entities are involved.
Regardless, The Big N will continue doing what it’s doing, and dedicate itself to being the best version of itself it can be. That’s just how they roll.
