Saudi Arabia’s Public Investment Fund (PIF) has reduced its stake in Nintendo Co. from 8.58% to 7.54%, according to a Japanese regulatory filing.

This decision comes just a day after reports surfaced that a senior executive from the sovereign wealth fund hinted at the possibility of increasing their investment in the Japanese gaming giant.

Prince Faisal bin Bandar bin Sultan al-Saud, vice chairman of Savvy Games Group, a subsidiary of PIF, addressed the potential for a larger stake in Nintendo and other Japanese gaming companies during the Tokyo Game Show in late September.

“It’s always a possibility,” Prince Faisal told Kyodo News, emphasizing the importance of maintaining open communication with partners to ensure any moves are made thoughtfully and strategically.

Following the news, Nintendo shares saw a 4.4% increase on Monday.

Saudi Arabia has been heavily investing in the gaming sector as part of its Vision 2030 initiative, which aims to diversify the economy away from oil dependency and establish the kingdom as a hub for e-sports and gaming. Crown Prince Mohammed bin Salman, who chairs Savvy Games Group, has been a driving force behind these investments.

Meanwhile, Nintendo is facing challenges with a slowing console market and its aging Switch hybrid console, which, despite being the company’s best-selling product with 143.4 million units sold worldwide, is now seven years old and losing its appeal as gamers turn to more advanced consoles from competitors like Microsoft and Sony.