Nintendo President Establishing $160 Million Game Development Fund

According to the Nihon Keizai Shimbun, Yamauchi, who owns 1.18 million Nintendo shares -- 10.8% of the outstanding shares -- plans to sell his entire stake in the company, realize the capital gains, and use those profits to set up the fund. The transaction will take place in after-hours trading on Tuesday, and Yamauchi said he will buy back enough shares on Wednesday to maintain a 10% stake. Money from the fund will be used to help game development companies from around the world cover their development costs, and only companies developing titles for the GameCube and Game Boy Advance will be eligible for the loans. The loans will average one billion yen at interest rates matching the prime lending rates of major banks. Firms that receive financing from the fund must complete designated projects within a year.