Sony Eyes Kadokawa Acquisition: Elden Ring, Dragon Quest in Play

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

Sony Might Acquire Elden Ring And Dragon Quest Media PowerhouseExpanding Into Other Media Forms

Tech behemoth Sony is reportedly in preliminary acquisition discussions with major Japanese conglomerate Kadokawa Corporation, aiming to "enhance its entertainment portfolio." Currently, Sony holds a 2% stake in Kadokawa and a 14.09% stake in Kadokawa-controlled studio FromSoftware, renowned for its acclaimed soulslike fantasy action RPG, Elden Ring.

Acquiring Kadokawa Corporation would significantly benefit Sony, as the conglomerate owns numerous subsidiaries including FromSoftware (Elden Ring, Armored Core), Spike Chunsoft (Dragon Quest, Pokémon Mystery Dungeon), and Acquire (Octopath Traveler, Mario & Luigi: Brothership). Furthermore, beyond gaming, the Kadokawa Group is prominent for its diverse media production companies involved in anime production, book publishing, and manga publishing.

Thus, an acquisition would undoubtedly fulfill Sony’s entertainment sector objectives, broadening its media reach. As Reuters reported, "Sony Group aims to secure rights to works and content through acquisitions, diversifying its profit structure beyond reliance on blockbuster titles." If successful, a deal could be finalized by the end of 2024. However, Sony and Kadokawa have declined to comment on the situation.

Kadokawa Share Price Soars, Yet Fans Remain Apprehensive

In response to the news, share price for Kadokawa has reached an all-time high, closing at 23% of their daily limit. The price reached 4,439 JPY from a 3,032 JPY price point before Reuters broke the news. Sony’s shares have also climbed 2.86%, following the announcement.

However, online reaction to the news has been muted, with many expressing concern about Sony and its recent acquisitions with underwhelming results. The most recent example is the abrupt closure of Firewalk Studios, purchased by Sony in mid-2023, only to shut down a year later after the poor reception of its multiplayer shooter game Concord. Even with an award-winning IP like Elden Ring, fans worry that the Sony acquisition will negatively impact FromSoftware and its output.

Others are considering the anime and media aspects, where a tech giant like Sony could monopolize anime distribution in the West if the deal proceeds. Sony already owns the popular anime streaming site Crunchyroll, and gaining access to a vast library of popular IPs like Oshi no Ko, Re:Zero, and Delicious in Dungeon would further solidify its position in the anime industry.