Sony Reportedly Negotiating Acquisition of Kadokawa, Parent Company of Elden Ring and Dark Souls Developer FromSoftware

Sony is reportedly eyeing a significant acquisition in the gaming world as it looks to buy the Japanese media giant, Kadokawa Corporation. This move would potentially expand Sony’s entertainment portfolio by bringing it closer to esteemed developer FromSoftware, known for hits like Elden Ring, Bloodborne, and Dark Souls.

According to a report from Reuters, discussions between Sony and Kadokawa are currently in progress. Sources suggest that if all goes well, we might see a deal finalized in the coming weeks. However, both Sony and Kadokawa have remained tight-lipped, declining to comment on this speculation when approached by Reuters.

Currently, Sony holds a 14% stake in FromSoftware, while Tencent, the Chinese tech titan, owns just over 16%. Kadokawa remains the majority shareholder with about 70% ownership. Should Sony succeed in acquiring Kadokawa, it wouldn’t just gain FromSoftware and its portfolio of games, including Armored Core and Sekiro. Kadokawa’s gaming division also boasts partnerships with developers like Spike Chunsoft of Dragon Ball: Sparking! Zero and Danganronpa fame, Octopath Traveler’s co-developer Acquire, and Gotcha Gotcha Games, known for RPG Maker. In addition to its gaming assets, Kadokawa holds substantial influence in film, TV, and publishing, particularly in the anime sector.

This potential acquisition fits neatly into Sony’s existing strategy, especially when you consider its ownership of Crunchyroll and Funimation. It positions Sony to further bolster its content offerings across various entertainment mediums, aligning seamlessly with its gaming properties that challenge players with epic battles and rewarding gameplay, for those skilled enough to conquer them.

In the context of broader industry movements, this comes amid a year of significant changes at Sony’s PlayStation division, which has experienced layoffs and studio closures. They’ve even pulled the plug on Concord, pulling it from shelves just weeks after its launch.

What are your thoughts on the implications of Sony potentially acquiring Kadokawa and, therefore, gaining a majority stake in FromSoftware? We’d love to hear your views in the comments!