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 diversify 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.

Beyond Gaming: A Multi-Media Strategy

The acquisition would significantly expand Sony's reach. Kadokawa's subsidiaries, including FromSoftware (Elden Ring, Armored Core), Spike Chunsoft (Dragon Quest, Pokémon Mystery Dungeon), and Acquire (Octopath Traveler, Mario & Luigi: Brothership), represent a substantial addition to Sony's gaming assets. Beyond gaming, Kadokawa's extensive anime production, book publishing, and manga divisions would further diversify Sony's holdings, reducing reliance on individual blockbuster titles, as Reuters suggests. A potential deal could be finalized by the end of 2024, though 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 up 23% at its daily limit (4,439 JPY from 3,032 JPY). Sony's shares also saw a 2.86% increase.

However, the online response has been mixed. Concerns exist regarding Sony's recent acquisition track record, citing the closure of Firewalk Studios in 2024 following the release of their poorly-received game Concord. This raises apprehension about the potential impact on FromSoftware's creative freedom and future projects, despite the success of Elden Ring.

Further concerns center on Sony's growing influence in the anime industry. Already owning Crunchyroll, acquiring Kadokawa's extensive anime IP (including Oshi no Ko, Re:Zero, and Delicious in Dungeon) could lead to a Western anime distribution monopoly.