A new report from GameBiz, translated by Automaton, has confirmed that the Saudi Arabian investment firm Electronic Gaming Development Company has acquired a 5.03% stake in Capcom recently. In a report given to the Kanto Local Finance Bureau, the EGDC stated the reason for its recent acquisition of stock was for “pure investment.” That basically means the company looks to earn profits from Capcom by upping its stake in the company.
For those a little confused by the business name, the EGDC is not the same thing as Saudi Arabia’s Public Investment Fund, or PIF. Sadly, the EGDC is a company that is owned by Saudi Arabian Crown Prince Mohammed bin Salman, who is the chairman of the PIF. The PIF also holds a 5% stake in Capcom, essentially giving the Crown Prince a 10% stake overall. This is a similar tactic to how the Saudi’s gained control of SNK, which was by utilizing two different companies to increase shares before doing a takeover.
At the moment, a 10% stake is not specifically a bad thing. It’s not a great sign for the future of Capcom, but 10% isn’t big enough for the Crown Prince to exert any control over the direction of Capcom’s games. It could start to grow over time, however, and wind up similar to how SNK has no autonomy anymore.
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Written by Peter Glagowski
Peter has been a freelance gaming and film critic for over seven years. His passion for Nintendo is only matched by the size of his collection.
