Saudi Arabia’s Public Investment Fund (PIF) has reduced its stake in Nintendo Co., just a day after reports indicated that the fund was considering increasing its holdings. According to a regulatory filing in Japan, PIF lowered its stake in the gaming company from 8.58% to 7.54%.

This decision followed comments made by Prince Faisal bin Bandar bin Sultan al-Saud, vice chairman of Savvy Games Group, the PIF’s gaming-focused subsidiary. In September, Prince Faisal mentioned that while increasing their stake in Nintendo and other Japanese gaming companies was “always a possibility,” it was important to maintain strong communication with partners and not rush any decisions.

On Monday, Nintendo’s stock rose 4.4% following the report from Kyodo News that quoted the prince’s remarks. However, shares saw a slight decline on Tuesday after the market closed, around the time news of PIF’s stake reduction emerged.

Saudi Arabia has been investing heavily in the gaming industry, both domestically and internationally, as part of its Vision 2030 plan to diversify its oil-reliant economy. Crown Prince Mohammed bin Salman chairs Savvy Games Group, further demonstrating the kingdom’s push to position itself as a leader in the global gaming and esports space.

Nintendo, meanwhile, is navigating a slowing console market, especially as its flagship Switch hybrid console, now seven years old, begins to show its age. The Switch, Nintendo’s best-selling console, has moved 143.4 million units worldwide but has seen a drop in sales as gamers turn to more advanced systems like the Xbox Series X and PlayStation 5. In the fiscal first quarter ending June 30, Nintendo reported a 46% year-over-year decline in Switch sales, shipping just 2.1 million units compared to 3.91 million in the same period last year.

The world is now awaiting the next move from Nintendo, as the company confirmed in May that it plans to reveal the Switch 2 within this fiscal year, though details remain scarce.