Sony May Acquire Elden Ring and Dragon Quest Conglomerate Kadokawa

Sony's Potential Acquisition of Kadokawa: Expanding its Entertainment Empire

Sony is reportedly negotiating to acquire Kadokawa Corporation, a major Japanese conglomerate, aiming to bolster its entertainment portfolio. This move follows Sony's existing 2% stake in Kadokawa and a 14.09% stake in FromSoftware, the studio behind the acclaimed Elden Ring.

Diversification Beyond Gaming

The acquisition would significantly benefit Sony, granting access to Kadokawa's diverse subsidiaries. These include FromSoftware (Elden Ring, Armored Core), Spike Chunsoft (Dragon Quest, Pokémon Mystery Dungeon), and Acquire (Octopath Traveler, Mario & Luigi: Brothership). Beyond gaming, Kadokawa's extensive media production arm encompasses anime, book publishing, and manga, allowing Sony to diversify its revenue streams and reduce reliance on individual hit titles, as Reuters notes. A potential deal could be finalized by the end of 2024, although both companies have declined to comment.

Market Reaction and Fan Concerns

News of the potential acquisition sent Kadokawa's share price soaring to a record high, closing at a 23% daily limit (4,439 JPY from 3,032 JPY). Sony's shares also saw a 2.86% increase.

However, online reaction has been mixed. Concerns stem from Sony's recent acquisitions, such as the closure of Firewalk Studios in 2024 following the poor reception of Concord. This raises fears about the potential impact on FromSoftware's creative freedom and future projects, despite the success of Elden Ring.

Further anxieties exist regarding the potential for a Western anime distribution monopoly should the deal proceed. With Sony already owning Crunchyroll, adding Kadokawa's extensive library (including titles like Oshi no Ko, Re:Zero, and Delicious in Dungeon) would significantly strengthen its position in the anime industry.