Sony Might Acquire Elden Ring And Dragon Quest Media Powerhouse

Expanding To Other Forms Of Media

Sony, a leading tech giant, is reportedly engaging in early acquisition discussions with the prominent Japanese conglomerate, Kadokawa Corporation. The aim is to "add to its entertainment portfolio," further diversifying its offerings. Sony currently holds a 2% stake in Kadokawa and a significant 14.09% stake in FromSoftware, the studio behind the critically acclaimed game, Elden Ring.

Acquiring Kadokawa would be a strategic move for Sony, as the conglomerate encompasses various subsidiaries, including FromSoftware (known for Elden Ring and Armored Core), Spike Chunsoft (creators of Dragon Quest and Pokémon Mystery Dungeon), and Acquire (behind Octopath Traveler and Mario & Luigi: Brothership). Beyond gaming, Kadokawa Group is renowned for its involvement in anime production and publishing books and manga.

This acquisition would align perfectly with Sony's goal to expand its influence in the entertainment sector, reaching into different forms of media. As reported by Reuters, "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 might be finalized by the end of 2024. However, as of now, both Sony and Kadokawa have declined to comment on the ongoing discussions.

Kadokawa Share Price Dramatically Increases, But Fans Are Concerned

Following the announcement, Kadokawa's share price soared to an all-time high, reaching a 23% daily limit and closing at 4,439 JPY, up from 3,032 JPY before the news broke. Sony's shares also saw a positive uptick, rising by 2.86%.

Despite the financial boost, the online community's response has been mixed. Many fans are expressing concerns over Sony's recent acquisitions, which have not always led to successful outcomes. A notable example is Firewalk Studios, acquired by Sony in mid-2023 and shut down just a year later following the poor reception to its multiplayer shooter game, Concord. Even with the success of Elden Ring, there's apprehension about how a Sony acquisition might impact FromSoftware's future projects.

On the anime and media front, some worry that Sony's potential acquisition could lead to a monopoly over anime distribution in the West. With Sony already owning Crunchyroll, a popular anime streaming platform, and gaining access to a vast array of popular IPs such as Oshi no Ko, Re:Zero, and Delicious in Dungeon, Sony's dominance in the anime industry could be significantly strengthened.