Sony is now Kadokawa's largest shareholder at 10%.
Sony has increased its stake in FromSoftware parent company Kadokawa to 10%, becoming the largest shareholder in the business, while the two corporations have entered into a “strategic capital and business alliance” according to a joint press release. It had been rumored for several weeks that Sony was in talks to fully acquire Kadokawa and thus its subsidiary, FromSoft, as well as a vast library of manga and anime properties.
According to the press release, Sony spent 50 billion yen ($317 million) to increase its stake in Kadokawa from 2% to 10%—back of the napkin math thus has the company’s overall value at just under $4 billion. The two companies say they “plan to discuss specific initiatives for collaboration, such as initiatives to adapt Kadokawa’s IP into live action films and TV dramas globally, co-produce anime works, expand global distribution of Kadokawa’s anime works through the Sony group, further expand publishing of Kadokawa’s games, and develop human resources to promote and expand virtual production.”
What I had feared since rumors of a potential acquisition first appeared was that FromSoftware would become a full-on first party Sony studio through this acquisition. Though Sony has been bringing more of its games to PC, it’s always on a one-half to full year delay for blockbuster singleplayer games, like the kind FromSoft makes (the new multiplayer-focused Elden Ring: Nightreign notwithstanding). Further, the continued PlayStation exclusivity of the FromSoft and Sony Japan Studio-developed Demon’s Souls and Bloodborne remains something of a defining console exclusivity original sin for PC gamers.
It’s unclear how the deal might change the publishing of FromSoft’s games moving forward—the studio’s go-to partner has been Bandai Namco—but under this framework, PlayStation exclusivity of FromSoft’s future games, timed or otherwise, doesn’t seem likely to me. This increased stake may position Sony for a full acquisition down the line, but hey: Tomorrow’s problems for tomorrow’s me.
Maybe by the time that happens, Sony will have reached the point where it’s fully simu-launching its games on PC—not a far-fetched proposition, given the continued growth of PC gaming and relative stagnation of consoles.
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