Saudi Arabia’s Public Investment Fund (PIF) trimmed its holding in Nintendo Co., a day after reports that a senior executive at the kingdom’s mammoth sovereign wealth fund said it was considering upping its stake.

The PIF reduced its stakehold in the Japanese video game giant to 7.54% from 8.58% previously, according to a Japanese regulatory filing on Tuesday.

It came a day after a report in local outlet Kyodo News cited comments by Prince Faisal bin Bandar bin Sultan al-Saud — vice chairman at Savvy Games Group, the PIF’s gaming-focused subsidiary — made in September. He was asked about a potential increased stake in Nintendo and other Japanese gaming companies and said: “It’s always a possibility,” adding that its partners’ consent is paramount.

“It’s important to keep the communication going so you get there in the right way. We don’t want to rush into anything,” he added.

On Monday, Nintendo shares gained 4.4% following the Kyodo News report. Shares fell fractionally on Tuesday, although news of the PIF shareholding came out shortly after the market close.

Saudi Arabia has in recent years poured billions of dollars into the gaming sector, both at home and abroad, aiming to become an e-sports and gaming hub as part of the kingdom’s Vision 2030 plan to modernize and diversify the heavily oil-dependent Saudi economy. Saudi Crown Prince Mohammed bin Salman is also the chairman of Savvy Games Group.

Nintendo has been grappling with a slowing console gaming market and an aging product by way of its flagship Switch hybrid console — its best-selling gear ever, which sold 143.4 million units worldwide. At seven years old, it’s lost some of its sheen, as gamers look to more advanced machines from the likes of Microsoft and Sony.

Sales performance of Switch devices have also been slowing in recent years due to a mixture of reasons including gamers coming out of Covid-19 lockdowns and the arrival of newer home gaming consoles, like the Xbox Series X and PlayStation 5.

In the company’s fiscal first quarter ending June 30, Nintendo reported a 46% year-over-year drop in sales of its Switch console. The firm shipped 2.1 million units in the three-month period, down from 3.91 million units a year ago.

Markets are now watching what the company is set to release next. In May, Nintendo confirmed it would announce the successor to its Switch product this fiscal year, without offering further details on what it’d look like or disclosing any specs.