Sony Aims to Strengthen Ties with FromSoftware’s Guardian, Kadokawa
Update (11/20/24): Kadokawa has confirmed that it has received an acquisition proposal.
In a brief letter to stakeholders, released in light of recent buyout trends, the company stated it has “received an initial letter of intent to acquire the company’s shares,” but stressed that “no decision has been reached at this moment.”
“If there are any developments requiring announcement in the future, we will inform the public in a timely and suitable fashion,” it added.
Typical narrative: Sony is reportedly in negotiations to acquire FromSoftware’s parent organization, Kadokawa Company. This information comes from Reuters, which consulted two sources familiar with the situation.
It is asserted that Sony and Kadokawa have already begun conversations and that a deal could potentially be finalized in the coming weeks. Currently, Sony owns a 14.09 percent share in Kadokawa and recently increased its stake in the company back in 2022. Kadokawa mentioned that the two organizations have developed a “collaborative business partnership” focused on creating new franchises.
Chinese multinational Tencent also holds a 16.25 percent stake in Kadokawa.
Kadokawa’s Publishing Strategies
Kadokawa is currently laying out plans to expand into PC and console publishing. In its most recent fiscal report, the company indicated it is “developing a framework” to enhance its gaming operations and also plans to intensify its focus on mobile initiatives.
The Japanese firm noted that FromSoftware’s critically acclaimed (and quite challenging) RPG, Elden Ring, continues to drive “significant growth” within its gaming sector.
Elden Ring has sold over 25 million copies since its release in 2022. FromSoftware expanded the title this year with the notable Shadow of the Erdtree expansion, which has been nominated for Game of the Year at The Game Awards 2024.
On the other hand, Sony has spent the past year reducing its internal studios. The company closed downHarmonydeveloper Firewalk and mobile studio Neon Koi in October. Prior to that, it laid off 900 employees across major PlayStation Studios including Insomniac, Naughty Dog, and Guerrilla. It also terminatedThe Getaway and VR Worlds developer London Studio.
About the Author
News Editor, GameDeveloper.com
Game Developer news editor Chris Kerr is an award-winning journalist and reporter with over a decade of experience in the gaming industry. His byline has appeared in major print and digital platforms including Edge, Stuff, Wireframe, World Trade Times, and PocketGamer.biz. Throughout his career, Chris has covered significant industry events such as GDC, PAX Australia, Gamescom, Paris Games Week, and Develop Brighton. He has served on the judging panel for The Develop Star Awards multiple times and has appeared on BBC Radio 5 Live to discuss breaking news.