Public Investment Fund (PIF) takes 5% Nintendo stake

Saudi Arabia’s Public Investment Fund (PIF) has taken a 5.01% stake in Nintendo Co Ltd as the sovereign wealth fund increases its exposure to the Japanese video gaming industry.

The investment in the Kyoto-based group company was made for investment purposes, a filing said, and comes as PIF has also taken stakes in video game companies Nexon, Capcom and Koei Tecmo.

The sovereign wealth fund, which manages more than $600 billion, took a stake in Activision Blizzard, the “Call of Duty” publisher which Microsoft said in January it would buy.

PIF has launched its own video game and e-sports company, Savvy Gaming.

Nintendo, which this month announced a 10-1 stock split in an appeal to retail investors, is forecasting a second year of sales decline for its Switch console amid component shortages.

Nintendo’s shares have gained 10.5% this year.