Sony Takes A Major Stake In FromSoftware's Owner, What Does This Mean For Gamers?

Earlier this year there were rumblings of a potential acquisition of Japanese mega-publisher Kadokawa by none other than Sony, which sent shockwaves through the gaming industry. It appeared as if Sony had its eye on buying the conglomerate due to its ownership of famed game development studio FromSoftware. The potential merger could have bolstered PlayStation’s portfolio, putting it even further ahead of its chief rival, Microsoft.

However, it seems as if the rumors were off the mark as to the magnitude of the acquisition. Instead, Sony has announced that it has simply acquired a further stake in Kadokawa, spending roughly $318 million to purchase 12,054,100 new shares. This purchase brings Sony’s total ownership of Kadokawa to 10%, making it the biggest single shareholder.


The two companies are calling this a “strategic capital and business alliance agreement.” The goal is to maximize the use of Kadokawa’s deep intellectual property portfolio by taking advantage of Sony’s distribution pipeline, with both companies eyeing potential avenues of turning Kadokawa’s IP, which is very strong in the world of manga, into live-action television shows, movies, and anime projects.

The announcement doesn’t delve into what this might mean for potential gaming projects down the line, but it does seem as if gamers on other platforms, specifically Xbox, can breathe a sigh of relief. Had Sony fully acquired Kadokawa, there would have been a real possibility that Xbox gamers could have been shut out from enjoying fan favorite games developed by FromSoftware. It would have been a big blow for Microsoft in particular, as it would mean losing out on award winning titles like Elden Ring, which will be adding a multiplayer-driven sequel in 2025.

For now, it seems as if Sony is content with strengthening its partnership with Kadokawa. However, it wouldn’t be surprising if the partnership becomes an acquisition at some point in the future, leading to a shakeup in the gaming industry.