Sony might be considering a major acquisition to compete with Microsoft’s massive $69 billion purchase of Activision Blizzard. Reports suggest that Sony is eyeing Kadokawa, a Japanese media conglomerate that owns 70 percent of FromSoftware, the creators of hit games like Dark Souls, Bloodborne, and Elden Ring.
This potential acquisition could strengthen Sony’s position in the video game industry by securing exclusive rights to FromSoftware’s popular and future projects, along with Kadokawa’s other significant intellectual properties.
Kadokawa, a major player in Japanese media, has stakes in manga and anime franchises, including Delicious in Dungeon and its Netflix adaptation. The success of Elden Ring and its DLC, Shadow of the Erdtree, demonstrates FromSoftware’s value, with the DLC alone selling five million copies shortly after launch.
While Sony already owns a 14 percent stake in FromSoftware, a complete takeover of Kadokawa would give it full control over the studio. However, Reuters hasn’t disclosed how much Sony is willing to pay, though Kadokawa’s market cap rose to $3.6 billion following the report.
If the deal moves forward, Sony would need to consider how to handle exclusivity. CEO Kenichiro Yoshida has expressed an interest in expanding content availability on Windows PCs alongside PlayStation consoles. This suggests Sony may not restrict games like Elden Ring to its own platforms. At the same time, Yoshida has highlighted the importance of creator-driven content, signaling caution in over-reliance on technologies like AI in game development.
Kadokawa’s recent difficulties, including a ransomware attack earlier this year that leaked sensitive data, might increase its willingness to sell. The attack exposed 1.5 terabytes of data and caused reputational harm. Selling to Sony could provide Kadokawa with an opportunity to resolve these challenges while allowing Sony to expand its influence in gaming, anime, and media.
While the acquisition could benefit Sony strategically, it raises concerns about monopolization in the gaming industry. Critics fear that Sony’s control over FromSoftware might hinder the studio’s creative independence, shifting its priorities toward corporate goals. For fans, this could mean significant changes in how beloved franchises are developed and distributed, potentially affecting the creative spirit that defines FromSoftware’s work.
