The news that Sony is in talks to buy Kadokawa, the Japanese media powerhouse behind the Elden Ring game, has stirred up strong emotions among gamers. Some fear a loss of choice due to corporate consolidation, while others express optimism for increased resources and remasters of beloved titles.
Sony already has a 2% stake in Kadokawa and an interest in From Software, the developer of Elden Ring, the company’s most significant success, with 25 million units sold as of June 2024. Acquiring Kadokawa would strengthen the technology giant’s global push into anime and entertainment. Streaming services and rising global interest in Japanese culture have fueled this trend.
Kadokawa, founded in 1945, currently operates a wide range of businesses, including publishing, television, and events with franchises like Re: Zero and Delicious in Dungeon. Its latest venture, a live-action movie based on the popular manga series Shinigami no Kami de mizu no Sekku (), is slated to be released in 2025.
Combined with its existing holdings in anime production, such as Crunchyroll and Funimation, and the rights to many of Japan’s top gaming companies, including Square Enix and Capcom, Kadokawa would be a virtual monopoly in the entertainment industry. Some fear this is a bad idea for the industry’s health and worry that Kadokawa’s influence in anime could be used as leverage against other developers in a power play by Sony.
Social media discussions have highlighted gamers’ tensions regarding whether a more prominent Sony is good for the gaming landscape. Users have expressed concerns about Sony absorbing smaller companies and their digital libraries. In contrast, others highlight the broader industry trend toward consolidation and worry about the effects of that on game design and development.
Ultimately, most gamers can trust Sony to make the right decisions. Sony has a track record of embracing new technologies, and the studios it owns have produced some of the most critically acclaimed games in recent history.
The only question is whether the deal will be completed before the new year. Until then, Kadokawa shareholders will likely watch their stock price closely as they await any announcement from the tech giant. Shares closed up 23% at their daily limit following the report, while the company’s market capitalization was around $2.7 billion before the Reuters article was published. Sony declined to comment. Elden Ring is now available to play on PlayStation 4. It also recently received a spiritual sequel with Demon’s Souls from Bandai Namco.
