Sony Eyes Acquisition of Kadokawa, Home to Elden Ring and Dragon Quest

Sony is reportedly in talks to acquire the Japanese conglomerate Kadokawa Corporation, aiming to expand its entertainment portfolio. Dive into the details of this potential acquisition and its implications.

Sony Might Acquire Elden Ring And Dragon Quest Media Powerhouse

Expanding To Other Forms Of Media

Sony, a leading tech giant, is reportedly engaging in early acquisition discussions with the major Japanese conglomerate, Kadokawa Corporation. This move is part of Sony's strategy to "add to its entertainment portfolio." Sony currently holds a 2% stake in Kadokawa and a 14.09% stake in FromSoftware, a Kadokawa-controlled studio renowned for the critically acclaimed soulslike fantasy action RPG, Elden Ring.

Acquiring Kadokawa Corporation would significantly enhance Sony's portfolio. Kadokawa owns several key subsidiaries, including FromSoftware (known for Elden Ring and Armored Core), Spike Chunsoft (behind Dragon Quest and Pokémon Mystery Dungeon), and Acquire (creators of Octopath Traveler and Mario & Luigi: Brothership). Beyond gaming, Kadokawa is a powerhouse in media production, encompassing anime, book, and manga publishing.

This acquisition aligns perfectly with Sony's ambitions in the entertainment sector, aiming to broaden its reach across various media forms. According to Reuters, "Sony Group hopes to gain the rights to works and content through acquisitions, making its profit structure less dependent on hit titles." Should the negotiations succeed, a deal might be finalized by the end of 2024. However, both Sony and Kadokawa have declined to comment on the current status of these talks.

Kadokawa Share Price Dramatically Increases, But Fans Are Concerned

Following the news, Kadokawa's share price soared to an all-time high, closing at a 23% increase, reaching 4,439 JPY from a previous 3,032 JPY before the announcement by Reuters. Sony's shares also saw a rise of 2.86%.

However, the reaction from fans and netizens has been mixed, with many expressing concerns about Sony's recent acquisitions and their outcomes. A notable example is the closure of Firewalk Studios, which Sony acquired in mid-2023 but shut down just a year later due to the poor reception of its multiplayer shooter game, Concord. Even with a successful IP like Elden Ring, there are worries about how Sony's acquisition might impact FromSoftware and its future projects.

From the perspective of anime and broader media, there are fears that Sony could dominate anime distribution in the West. With Sony already owning Crunchyroll, acquiring Kadokawa would give it access to a vast array of popular IPs such as Oshi no Ko, Re:Zero, and Delicious in Dungeon, further solidifying its position in the anime industry.