Saudi Arabia’s Public Investment Fund (PIF) sold 17.3 million shares in Nintendo Co., reducing its ownership stake from 8.58% to 7.54%.

This sale occurred between August 21 and October 1, as disclosed in a filing to Japan’s Finance Ministry.

This decision follows Prince Faisal bin Bandar’s expression of interest in reallocating funds toward Nintendo.

Investors reacted quickly, as Nintendo’s shares closed down 0.6% in recent trading, consistent with a decline in the Nikkei 225 Stock Average.

This dip followed initial reports suggesting the PIF was considering additional investments.

This share sale is part of the Saudi government’s strategy to diversify from an oil-dependent economy.

The PIF has invested approximately $38 billion in the entertainment and gaming industries in recent years, acquiring stakes in various Japanese and Korean gaming companies to establish a gaming and entertainment hub in the Middle East.

Despite reducing its stake, the PIF retains a significant position as one of Nintendo’s largest shareholders, holding assets totaling approximately US$760 billion at the end of last year.

The fund also invests in companies such as Nexon Co., Capcom Co., and Koei Tecmo Holdings Co., further underscoring its influence in the gaming industry.