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 and "add to its entertainment portfolio." This potential acquisition could have significant implications for Sony's future in the entertainment industry. Read on to learn more about this ongoing development and its potential impact.

Sony Might Acquire Elden Ring And Dragon Quest Media Powerhouse

Expanding To Other Forms Of Media

Sony, a leading tech giant, is reportedly engaged in early acquisition talks with the major Japanese conglomerate Kadokawa Corporation. The move is part of Sony's strategy to "add to its entertainment portfolio." Currently, Sony 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 a powerhouse in media production, encompassing anime production and the publishing of books and manga.

This acquisition would align with Sony's goal to expand its reach into various forms of media. As Reuters reports, "Sony Group hopes to gain the rights to works and content through acquisitions, making its profit structure less dependent on hit titles." Should negotiations succeed, a deal could be finalized by the end of 2024. However, both Sony and Kadokawa have declined to comment on the current status of the talks.

Kadokawa Share Price Dramatically Increases, But Fans Are Concerned

Following the news, Kadokawa's share price surged to an all-time high, closing at a 23% increase at the daily limit. The price escalated from 3,032 JPY to 4,439 JPY after Reuters broke the story. Sony's shares also saw a rise of 2.86% following the announcement.

However, the reaction among fans and netizens has been mixed, with many expressing concern over Sony's recent acquisitions and their outcomes. A notable example is the abrupt closure of Firewalk Studios, which Sony acquired in mid-2023 but shut down just a year later following a negative reception to its multiplayer shooter game, Concord. Despite FromSoftware's acclaimed IP like Elden Ring, fans worry that Sony's acquisition might impact the studio's creative output.

From the perspective of anime and media, some worry that Sony's acquisition of Kadokawa could lead to a monopoly over anime distribution in the West. Sony already owns the popular anime streaming site Crunchyroll, and acquiring Kadokawa would grant 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.