Sony May Acquire Elden Ring and Dragon Quest Conglomerate Kadokawa

Sony's Pursuit of Kadokawa: A Media Empire in the Making?

Reports suggest Sony is negotiating the acquisition of Kadokawa Corporation, a significant Japanese conglomerate, to bolster its entertainment portfolio. This move reflects Sony's strategic expansion beyond gaming.

Diversifying Sony's Entertainment Holdings

Sony already holds a 2% stake in Kadokawa and a substantial 14.09% share in FromSoftware, the studio behind the acclaimed Elden Ring. A full acquisition would grant Sony control over numerous subsidiaries, including:

• FromSoftware (Elden Ring, Armored Core)
• Spike Chunsoft (Dragon Quest, Pokémon Mystery Dungeon)
• Acquire (Octopath Traveler, Mario & Luigi: Brothership)

Beyond gaming, Kadokawa's extensive media holdings encompass anime production, book publishing, and manga. This acquisition aligns with Sony's aim to diversify its revenue streams and reduce reliance on individual blockbuster titles, as stated by Reuters. A potential deal could be finalized by the end of 2024, though both companies have refrained from commenting.

Market Reaction and Fan Concerns

News of the potential acquisition sent Kadokawa's share price soaring to a record high, closing at a 23% increase. Sony's shares also saw a positive boost.

However, online reaction has been mixed. Concerns exist regarding Sony's recent acquisition track record, citing the closure of Firewalk Studios in 2024 following the poor reception of Concord. This raises anxieties about the potential impact on FromSoftware's creative freedom and future projects, despite the success of Elden Ring.

Furthermore, the anime community expresses apprehension about a potential Western anime distribution monopoly. With Sony already owning Crunchyroll, adding Kadokawa's extensive catalog (including titles like Oshi no Ko, Re:Zero, and Delicious in Dungeon) could significantly consolidate its power within the industry.