Sony Eyes Acquisition of Kadokawa, Maker of Elden Ring and Dragon Quest

Sony is reportedly in talks to acquire the Japanese conglomerate Kadokawa Corporation, as the gaming giant strives to expand and "to add to its entertainment portfolio." Read on to learn more about this ongoing acquisition and what this would mean.

Sony Might Acquire Elden Ring And Dragon Quest Media Powerhouse

Expanding To Other Forms Of Media

Tech giant Sony is reportedly in early acquisition talks with the major Japanese conglomerate Kadokawa Corporation, aiming to "add to its entertainment portfolio." Sony currently holds a 2% stake in Kadokawa and a 14.09% stake in Kadokawa-controlled studio FromSoftware, renowned for its critically acclaimed soulslike fantasy action RPG, Elden Ring.

Acquiring Kadokawa Corporation would significantly benefit Sony, as the conglomerate owns several subsidiaries, including FromSoftware (Elden Ring, Armored Core), Spike Chunsoft (Dragon Quest, Pokémon Mystery Dungeon), and Acquire (Octopath Traveler, Mario & Luigi: Brothership). Beyond gaming, the Kadokawa Group is well-known for its media production companies that produce anime and publish books and manga.

This acquisition would align perfectly with Sony’s goal to expand its reach into other forms of media. As Reuters notes, "Sony Group hopes to gain the rights to works and content through acquisitions, making its profit structure less dependent on hit titles." If negotiations succeed, a deal might be signed by the end of 2024. However, as of now, both Sony and Kadokawa have declined to comment on the current state of affairs.

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% daily limit increase, rising from 3,032 JPY to 4,439 JPY. Sony’s shares also advanced by 2.86% after the announcement.

However, the response from netizens has been mixed, with many expressing concerns about Sony's recent acquisitions and their less-than-promising outcomes. A notable example is the sudden shutdown of Firewalk Studios, which Sony acquired in mid-2023, only to close it a year later following the negative reception to its multiplayer shooter game Concord. Even with an award-winning IP like Elden Ring, fans worry that Sony's acquisition could impact FromSoftware and its creative output.

From the anime and media perspective, some fear that Sony, already owning the popular anime streaming site Crunchyroll, could monopolize anime distribution in the West if the deal goes through. Gaining access to popular IPs like Oshi no Ko, Re:Zero, and Delicious in Dungeon would further solidify Sony's position in the anime industry.