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Update: Sony working to acquire FromSoftware parent company Kadokawa

A potential deal could see Elden Ring become a first-party PlayStation franchise.

Chris Kerr, News Editor

November 19, 2024

2 Min Read
Key artwork for Elden Ring
Image via FromSoftware

At a Glance

  • It's claimed Sony and Kadokawa have already entered discussions.

Update (11/20/24): Kadokawa has confirmed it has received an acquisition offer.

In a brief letter to investors, published in response to recent buyout reports, the company said it has "received an initial letter of intent to acquire the company's shares," but emphasized that "no decision has been made at this time."

"If there are any facts that should be announced in the future, we will make an announcement in a timely and appropriate manner," it added.

Original story: Sony is reportedly in talks to acquire FromSoftware parent company Kadokawa Corporation. That's according to Reuters, which spoke with two sources familiar with the matter.

It's claimed Sony and Kadokawa have already entered discussions and that a deal could be signed in the coming weeks. Sony currently holds a 14.09 percent stake in Kadokawa and last upped its stake in the company back in 2022. Kadokawa said the pair have built a "collaborative business relationship" around creating new franchises.

Chinese conglomerate Tencent also holds a 16.25 percent stake in Kadokawa.

KadoKawa's publishing plans

Kadokawa recently outlined plans to push into PC and console publishing. In its latest fiscal report, the company said it's "developing a structure" to bolster its video game business and also intends to double down on mobile projects.

The Japanese company noted that FromSoftware's critically acclaimed (and rather brutal) RPG, Elden Ring, continues to drive "high growth" within its gaming business.

Elden Ring has sold over 25 million copies since launching in 2022. FromSoftware expanded the title this year with the celebrated Shadow of the Erdtree expansion, which has been nominated for Game of the Year at The Game Awards 2024.

Sony, meanwhile, has spent the last year downsizing its internal studios. The company shuttered Concord developer Firewalk and mobile studio Neon Koi in October. Prior to that, it laid off 900 employees across key PlayStation Studios such as Insomniac, Naughty Dog, and Guerrilla. It also closed The Getaway and VR Worlds developer London Studio. 

About the Author

Chris Kerr

News Editor, GameDeveloper.com

Game Developer news editor Chris Kerr is an award-winning journalist and reporter with over a decade of experience in the game industry. His byline has appeared in notable print and digital publications including Edge, Stuff, Wireframe, International Business Times, and PocketGamer.biz. Throughout his career, Chris has covered major industry events including GDC, PAX Australia, Gamescom, Paris Games Week, and Develop Brighton. He has featured on the judging panel at The Develop Star Awards on multiple occasions and appeared on BBC Radio 5 Live to discuss breaking news.

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