Sony may be considering an acquisition from the software parent company

Key things

  • Sony is reportedly in talks to take over FromSoftware's parent company Kadokawa.
  • Kadokawa's anime, film, television and games are in line with Sony's ambitions to expand its entertainment business.
  • However, there is a possibility that FromSoftware may not be integrated into PlayStation Studios.



Sony is reportedly in talks to buy Kadokawa, a Japanese media company that owns decorated game developers FromSoftware. This deal would see FromSoftware's highly significant IP addresses such as Elden Ring, Armored Coreand Sekiro: Shadows Die Twice potentially folded under the Sony umbrella.

FromSoftware is credited with playing a huge role in popularizing the Souls genre, especially with Dark souls series, Soul of Demons, Bloodyand very successful Elden Ring. In recent years, FromSoftware has also dabbled in the action genre with games like Sekiro: Shadows Die Twice and Armored Core 6the latest installment in its long-term operation Armored Core mecha fighting series.

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During the same period, Sony acquired several studios to expand the PlayStation's first-party roster, and FromSoftware could be next. According to a new report from Reuters Sony is currently discussing the prospect of buying Kadokawa in an effort to strengthen its entertainment portfolio. Kadokawa's businesses include anime, games, manga, television and film, and Sony already owns a 2% stake in Kadokawa and 14% in FromSoftware, making it a prime candidate to acquire the company.



Kadokawa's anime and gaming endeavors seem like a perfect fit for Sony's growing business

Anime has been focusing on Sony in recent years. The company currently owns anime streaming platforms Crunchyroll and Funimation, and acquiring a prolific anime publisher like Kadokawa would further strengthen Sony's anime business. In addition to FromSoftware, Kadokawa's gaming subsidiaries include Octopath Traveler developer Acquire, Danganronpa developer Spike Chunsoft and RPG creator developed by Gotcha Gotcha Games. Reuters says both Sony and Kadokawa have so far declined to comment on the buyout, but if their discussions go the right way, a deal could be signed in the coming weeks.


FromSoftware may not be part of PlayStation Studios

However, PlayStation fans should temper their expectations regarding FromSoftware's addition to the gaming giant's family of first-party studios. Since the buyout of Kadokawa would be initiated by the Sony group rather than Sony Interactive Entertainment (the parent company of PlayStation), this could very well mean that FromSoftware and other Kadokawa game studios are integrated into Sony rather than PlayStation. It would be similar to Sony's arrangement with Aniplex, where the company releases games on any platform, sometimes even skipping PlayStation, as with the upcoming The Hundred Line: Last Defense Academy.

On the contrary, Sony likely understands that FromSoftware's pedigree and expertise can be quite beneficial to PlayStation, so it could roll the studio over to Sony Interactive Entertainment and absorb the rest of Kadokawa for its entertainment activities. However, it remains to be seen how the negotiations between Sony and Kadokawa will play out, so the next few weeks will be potentially very important for both companies.

FromSoftware

From the software

Based in Japan, FromSoftware is the developer company best known for the Souls series and the Armored Core franchise. Other popular games from From Software include Elden Ring, Sekiro, Bloodborne and the King's Field series.

Date of establishment
November 1, 1986

Headquarters
Tokyo, Japan

CEO
Hidetaka Miyazaki

Parent company
Kadokawa

Known for
dark souls, Armored Core

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