Sony May Acquire Elden Ring and Dragon Quest Conglomerate Kadokawa

Sony is reportedly negotiating the acquisition of Japanese conglomerate Kadokawa Corporation, aiming to bolster its entertainment portfolio. This potential deal has significant implications for the gaming and media industries.

Sony's Potential Acquisition of Kadokawa: Expanding Beyond Gaming

Tech giant Sony is reportedly in early-stage talks to acquire Kadokawa Corporation. Sony already holds a 2% stake in Kadokawa and a 14.09% stake in FromSoftware, the developer behind the acclaimed Elden Ring. This acquisition would significantly expand Sony's reach.

Kadokawa's portfolio includes prominent game developers like FromSoftware (Elden Ring, Armored Core), Spike Chunsoft (Dragon Quest, Pokémon Mystery Dungeon), and Acquire (Octopath Traveler, Mario & Luigi: Brothership). Beyond gaming, Kadokawa is a major player in anime production, book publishing, and manga. The acquisition aligns with Sony's strategy to diversify its entertainment holdings and reduce reliance on individual hit titles, as stated by Reuters. A deal could potentially be finalized by the end of 2024, though both companies have declined to comment.

Kadokawa's Soaring Stock Price and Fan Concerns

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

However, the news has received mixed reactions online. Concerns exist regarding Sony's recent acquisitions, citing the closure of Firewalk Studios in 2024 after the less-than-successful launch of Concord. This raises anxieties about the potential impact on FromSoftware's creative freedom and future projects, despite the success of Elden Ring.

Furthermore, some express apprehension about Sony's growing influence in the anime industry. Already owning Crunchyroll, acquiring Kadokawa's extensive anime IP (including titles like Oshi no Ko, Re:Zero, and Delicious in Dungeon) could significantly strengthen Sony's position in the Western anime market, potentially leading to concerns about a monopoly.