**Saudi Arabia's PIF Reduces Stake in Nintendo Amid Market Speculations**

In a surprising turn of events, Saudi Arabia's Public Investment Fund (PIF) has scaled back its stake in Nintendo Co. This move comes just a day after reports surfaced suggesting that the fund might increase its holdings in the Japanese video game powerhouse. According to a recent Japanese regulatory filing, the PIF's stake in Nintendo dropped from 8.58% to 7.54%.

The reduction in shares follows comments made in September by Prince Faisal bin Bandar bin Sultan al-Saud, vice chairman at Savvy Games Group, a subsidiary of the PIF. In a report by Kyodo News, Prince Faisal indicated the fund's openness to possibly raising its investments in Nintendo and other Japanese gaming companies. "It's always a possibility," he stated, emphasizing the importance of partner consent and proper communication to ensure careful and strategic investment decisions.

On the day of the Kyodo News report, Nintendo shares experienced a notable 4.4% rise, signaling strong investor response to the possibility of PIF increasing its stake. However, by the following day, shares saw a slight decline, despite news of the PIF's shareholding adjustment being released shortly after the market's close.

Saudi Arabia's recent focus on the gaming industry is part of its broader Vision 2030 initiative, which aims to transform the country's economy by reducing its dependence on oil. The kingdom has invested billions in both domestic and international gaming ventures to position itself as a leading e-sports and gaming hub. Crown Prince Mohammed bin Salman, who also chairs the Savvy Games Group, has been a driving force behind these investments.

While the PIF adjusts its investment portfolio, Nintendo continues to face its own set of challenges. The company's Switch console, its best-selling product with 143.4 million units sold worldwide, is now seven years old and losing its appeal as newer consoles from Microsoft and Sony hit the market. Nintendo's fiscal first quarter ending June 30 saw a 46% drop in Switch sales year-over-year, with only 2.1 million units shipped compared to 3.91 million the previous year.

The gaming community is now eagerly awaiting Nintendo's next move. In May, the company confirmed plans to announce a successor to the Switch within the current fiscal year, though it remains tight-lipped about the new product's details and specifications.