Sony may acquire Kadokawa Corporation: what it means for the gaming industry

According to Reuters, Sony is in talks to buy Kadokawa Corporation, one of Japan’s largest media conglomerates. If an agreement is reached, the deal could close in the coming weeks.

Sony

What is Kadokawa Corporation.

Kadokawa Corporation is a powerful player in the media market, owning:

• Publishing manga and books.
• Movie studios and DVD production.
• Cross-media projects.

But Kadokawa is most interesting from a video game perspective. The company owns:

.
1. FromSoftware is the developer of such iconic games as:
   • Elden Ring

   .

   • Bloodborne
   • Dark Souls
   • Sekiro: Shadows Die Twice.
2. Dwango is a telecommunications and media company that owns Spike Chunsoft Studios (Dragon Ball: Sparking! Zero).
3. Acquire is the creator of games such as Octopath Traveler and Octopath Traveler II.

Potential implications

1. FromSoftware under Sony’s wing
   • If the deal goes through, Sony will own the studio that created Elden Ring, one of the most successful releases of 2022.
   • This will strengthen PlayStation’s position as a AAA gaming platform, attracting an audience for fantasy action and RPGs.
2. Spike Chunsoft and Acquire
   • Sony’s influence could help these studios enter the global market with bigger budgets and better marketing.
3. Strengthening PlayStation Studios
   .
   • Sony will be able to integrate FromSoftware and other Kadokawa subsidiaries into its exclusives ecosystem, further widening the gap with competitors such as Xbox.

Financial Effect

• Amid rumors, Kadokawa’s stock rose 23% to an all-time high of ¥3,745.
• This is a major jump, especially after the June cyberattack that caused the stock price to drop 20%.

Closure

If Sony acquires Kadokawa Corporation, it will be one of the most significant deals in the gaming industry. Control of FromSoftware, as well as other talented studios, will strengthen PlayStation’s position and create a new round of competition in the game platform market.

Sony’s acquisition of Kadokawa Corporation would be one of the most significant deals in the gaming industry.