Sony May Acquire Elden Ring and Dragon Quest Conglomerate Kadokawa

Sony is reportedly negotiating to acquire the Japanese conglomerate Kadokawa Corporation, aiming to expand its entertainment portfolio. This potential acquisition has significant implications for the gaming and entertainment industries.

Sony's Bid for Media Empire: Elden Ring, Dragon Quest, and Beyond

Tech giant Sony is reportedly in early talks to acquire Kadokawa Corporation, a major Japanese conglomerate. Sony already holds a 2% stake in Kadokawa and a 14.09% stake in FromSoftware, the studio behind the acclaimed Elden Ring. This acquisition would significantly bolster Sony's holdings, adding numerous subsidiaries to its portfolio. These include FromSoftware (Elden Ring, Armored Core), Spike Chunsoft (Dragon Quest, Pokémon Mystery Dungeon), and Acquire (Octopath Traveler, Mario & Luigi: Bowser's Inside Story). Beyond gaming, Kadokawa's extensive media production companies produce anime, publish books, and create manga.

The acquisition aligns with Sony's strategy to diversify its entertainment holdings, reducing reliance on individual hit titles and securing rights to a wider range of content. Reuters reports that a deal could be finalized by the end of 2024, though both Sony and Kadokawa have declined to comment.

Market Reaction and Fan Concerns

News of the potential acquisition sent Kadokawa's share price soaring, reaching a daily limit of 23%, closing at 4,439 JPY from 3,032 JPY. Sony's shares also saw a 2.86% increase.

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

Further concerns focus on the potential consolidation of anime distribution in the West. Sony already owns Crunchyroll, and adding Kadokawa's impressive IP library (including Oshi no Ko, Re:Zero, and Delicious in Dungeon) could significantly strengthen its position in the anime industry.