Sony has reportedly entered talks with Elden Ring maker Kadokawa Corporation with a view to acquiring the company, Reuters claims via two sources. Discussions are said to be ongoing, and if they're successful, a finalised deal could be signed within the coming weeks. The firm's stocks are estimated to be worth around $2.7 billion, of which Sony already owns two per cent.
If a deal came to fruition, it would see Dark Souls, Bloodborne developer FromSoftware fall under the Sony banner, but there's far more to Kadokawa Corporation than that. The company's main operations relate to manga, books, and film. Sony already owns significant anime distribution platforms like Crunchyroll and Funimation, so the acquisition would account for far more than just video games. Spike Chunsoft is also owned by the Kadokawa Corporation, the studio behind titles like Danganronpa.
Both Sony and Kadokawa Corporation declined to comment on Reuter's report. Should a deal go through, it would be the first PlayStation-related acquisition made since Concord developer Firewalk Studios was purchased in 2023. Before then was Haven Studio with the upcoming Fairgame$, Bluepoint Games, Returnal developer Housemarque, and Nixxes.
[source reuters.com]
Comments 95
Of course they are!!!
If you can’t beat them… 😛
If ever there was a purchase that was a good Sony buy its this. And capcom.
I think square enix is on its way out
Finally a good purchase, enough of Bungie, let’s get Bloodborne 2!
Bungie, Haven and Firewall turned out to be idiotic, self-defeating acquisitions.
But they were also walled-off targets, unproven in output and quality (Earlier iterations of Bungie were proven, but the current Bungie seems drained for talent) and ultimately irrelevant when brought to the fold.
I would like it to be a studio who can make the games I like, but I think From software's track record is great and they're the most 'relevant' group of Devs in these past few years not counting CDR Projekt Red and Larian (who makes my dream games).
@EfYI
Bungie are still the absolute kings of FPS gameplay. It’s just the things outside of the core gameplay they are struggling to get right. The Final Shape is a 91 on OpenCritic, released just this year.
Given the multiple media's involved, this would make a good fit for Sony's portfolio...
All this to make Bloodborne run at 60...
Hopefully (if goes through) Sony keep things like ER/AC multi platform in future. They deserve to be played by as many as possible.
But Sony want to expand outside of gaming so this deal makes sense.
@Voltan
I was happy the acquisition race had slowed down due to the competive random nature of it. However, if Sony is going to spend big, this is one to spend big on, it provides on several levels, plus on the games front they've had a long standing (if bumpy) relationship with From.
This is sounds like Nishino or Totoki idea because Hermen would buy another western devs.
But i think it's a smart choice not just they get From Soft and Spike Chunsoft for games but they also got Kadokawa which is one of the biggest company in Japan or in the world when comes to manga, anime, and movies.
This sounds like a much more sensible and targetted aquisition than others.
Activision has not proved good for Xbox (game pass price hikes, games on PS5 to appease shareholders etc etc), but this is smaller scale and feels like a much better fit.
@PuppetMaster Hermen was the one behind the Physint deal with Kojima so I wouldn’t write off his influences for this, but this is more about the Manga side of Kadokawa so is more the money side of the CEO partnership.
So... I think we should all draw breath... and chill... because these sorts of rumours often circulate for a few days, then disappear. Even if they are in discussions, that doesn't mean it's both parties are wanting to do this. It also doesn't mean that other parties are aren't also in discussions.
Edit - I'd also be a little surprised... just that they've addressed this previously by saying they had no interest in acquisition, and after ER, I would think they could do whatever they wanted (From Soft that is... but of course the parent company, Kadokawa, is a different story altogether).
I can see it making sense for Sony... on many different counts. All I can say however... if this didn't produce a Bloodborne 2, I think the world truly is a cruel simulation.
@EfYI soorry... did I catch you right? Bungie was unproven... wow, that's some high standards.
>"Spike Chunsoft is also owned by the Kadokawa Corporation, the studio behind titles like Danganronpa."
And Dragon Quest I to V, when it was just Chunsoft.
Dark Souls Live Service incoming.
It makes sense for Sony’s portfolio but not a fan of these huge acquisitions.
I don’t think Sony would influence them much hopefully if it did happen.
RIP Acquire and Spike Chunsoft if this is true and the acquisition happens.
@Rich33 : "but this is smaller scale"
I wouldn't call a purchase of Kadokawa, one of the world's big (if not the biggest) anime/manga/light novels companies, a 'smaller scale'. I get your point otherwise though.
@get2sammyb: Agreed, I feel the same tbh.
Kadokawa Shoten is huge. Well when I was younger their name was on everything manga.
From is the cherry on top. This is all about solidifying their Anime business which is growing rapidly.
@get2sammyb I think they'd leave them to it. Keep your income/profits over the red line and never hear from us, that kind of thing.
I assume Sony Pictures would be making the buy, so FromSoftware may not end up in the first-party stable for PlayStation. And FS love working with Bandai Namco.
Would be a great get for Sony, not so much for From Software.
That means that T-T-T-Tenchu would be a F-F-First Party IP........I need to sit down O__O
@Voltan exactly what went through my head. Probably the only way to sort all the legalities to make a Bloodborne Remaster PS5 Ultimate Patched Edition.
@breakneck on a more serious note, I agree. FromSoftware is most likely just a nice bonus here, but anime juggernaut that Sony has become is producing so much "healthy" profit that it makes sense to acquire additional proven properties.
Oh not again can’t we all just get along lol
@get2sammyb yeah at least sony have a decent track record when it comes to just letting the devs realise the dream
Hoo boy, remember when Xbox was looking at Actiblizz and people were crying "monopolies" all over the place? Good times.
On one hand, Sony increasing its portfolio of Japanese developers would be very welcome news, on the other, I never like seeing multiplatform studios getting the acquisition treatment. All things considered I hope this remains a rumour.
Hopefully this is real and if it's it'll sail through no problem despite what the haters want people to believe then they can go after CD Project Red next.
@ThatOneSneak Not even remotely comparable of course, but nonetheless it wouldn't be great for the market.
@Coolmusic
I may be misreading but I was going on $2.7bn vs circa $70bn. Comparatively much smaller, but not small. Targetted, not monopolising (at least not in the game space - manga / anime, I cant say).
I know I'm among Sony diehards, but I still have to ask the question: does anybody really profit from this!?
If they were struggling and couldn't continue independently, sure! But I think they've done well for themselves to avoid consolidation.
Removed - inappropriate
@ThatOneSneak People were crying "monopoly" after Microsoft bought Zenimax and ABK.
This isn't comparable.
@PuppetMaster
Or it could be not related to games at all
People often forget that Sony owns Aniplex, which helps in anime production, and that Kadokawa is the main client of Aniplex.
Getting FromSoftware is just a bonus, the money is at Kadokawa's anime portfolio.
@Shepherd_Tallon Agree, but I guess they could end up with quite a few IPs if not the developers/studios, depending on legal arrangements.
I wonder if this has anything to do with the rumours of Uncle Phil wanting to buy another Japanese studio
I hope this is nonsense and if not nonsense it all falls through.
Nobody benefits from this other than Sony.
PS gamers will be in the same position and all other gamers lose out.
I know it’s not as big as Danganronpa, but Spike Chunsoft also makes AI: The Somnium Files.
Removed - unconstructive
@MrPeanutbutterz With how much stake Sony's gonna have in the Anime/Manga side of things, it's gonna be a fairly big acquisition.
@Mikey856 remember the closure of 5 Sony studios just this year? Because I do.
With the sony we know during the last years, this is concerning.
It makes a lot of sense why but I don't want to see it happen. There's been enough consolidation in the industry.
I'm only in support of things like this if the company being acquired is in deep financial trouble. I can't imagine Kadokowa is in a situation like that but maybe I'm wrong.
If this were true, bet Sony would have preferred that the news didn't leak in case someone outbid them.
@AdamNovice I'm not sure anyone will atm. There was a rumour a few weeks back that Tencent are scaling down on their gaming investments. When I heard that it felt like it would just be a matter of time before Sony went for Kadokawa. I don't think anyone else who can is in a position to bid.
Plus, Kadokawa have a capital alliance with Sony. I'd bet Sony have been moving towards this for years, but Tencent spoiled the plan.
@ChrisDeku
I stand corrected - I fell out of love with D2 though
@Friendly that’s not my point. My point is devs are given ample development time under Sony usually. What happens after the sh**storm is a different kettle of cornflakes
I don't really see this as good news...
During the last few years, Sony took quite a few questionable decisions, closed a handful of studios, they still cling to hunting that GAAS unicorn no matter the price, the PS5 exclusive portfolio is still lacking after 4 years, there is no clear roadmap for the PS5 future aside for a couple of new titles etc etc.
Speaking of Sony and From, should I add that Bloodborne is still abandoned, with no official plan to Re/Re it, make a PC port or a sequel, even if all of it's fans have been demanding them for years (and they're not just a few)?
If it's about a choice between who purchases it, Sony or Microsoft, I'd rather have Sony do it.
But given the above, It's still concerning...
Smart acquisition if it happens. Benefits Sony as a whole, not just PlayStation.
@EfYI Haven's game hasn't even come out , so its way to early to say that lol. i'll give you firewalk though. that was a fumble. it sounds like sony has more control over bungie so we'll see if it was a bad move or not.
Wow that's a smart decision, good match aswell 👍
@Friendly I definitely agree, gaming has become too big. Lots of publishers are struggling. The market is flooded with games. People cant buy that many anymore. Development costs are too high. Any game that doesnt sell well can get a studio in the red instantly.
Gaming has grown too big and consolidation is gonna happen. I think this acquisition is a great fit for both parties. Sony as a company would be wise to make key acquisitions to keep staying competitive. You cant let the competition just buy up everything.
At this moment there might be multiple companies in talks with several studios or publisher to acquire them. Instead of Capcom going to Amazon or Microsoft, or CDPr going to Tencent, or whatever. Id rather have Sony make some key moves here before important IPs get snatched up. Gaming will move to streaming in the future. And IP will be king.
And with Microsoft spending $80 billion on publishers and studios, and also stating they are not done with acquisition, Sony can probably do whatever they want for while without people complaining about consolidation.
Let's just pray Herman "Concord" Hulst doesn't get any creative sway over From whatsoever.
@LogicStrikesAgain
So a lot of people here can throw their earlier arguments away that consolidation in general is bad.
Sony’s also been doing it for a very long time. Has never changed. Sony’s a very bad guy, just as Microsoft is. I don’t like consolidation because I prefer choice. And also, because consolidation will result in a lot of layoffs. But here, while stated otherwise, to me the argument seemed to be that people hated consolidation only because Microsoft does it.
Well. Turns out I was correct in those discussions. Consolidation for a lot on here is good when the coin flips Sony’s way, apparently. Being cheered and liked at in the first few comments already. Again: this will result in a lot of layoffs and a lot less artistic freedom. Don’t know why everyone is cheering. The games were on Sony’s platform anyway.
If this happens I hope they keep FromSoftware games multi-platform. I'd rather see FromSoft independent though.
I can't imagine something much worse than a western company in all but name taking control over a good chunk of the manga being created.
Piss off with that money and go make Concord 2 or something.
This was always going to happen more once MS was greenlit for the biggest aquisition in history. Anyone who was cheerleading for one side was naive if they didn't think it would push others to follow suit.
@Friendly The statement consolidation is bad might be true, but it cant exist in a vacuum. Context matters.
Ofcourse people are going to mention Microsoft in this discussion. Sonys competitor just bought 2 of the biggest publishers in the world and spend $80 billion, an amount almost unheard of, in any type of business. And they’re stating they will continue their acquisitions. Or are you implying that Microsoft can do it? And Sony cant? These are still competing businesses. Such moves cannot be ignored by Sony, if they want to keep up.
And also, you seem to have missed all my arguments as to why consolidation will happen in the gaming space, it has grown out of proportion. Gaming will be consolidated one way or another, whether Sony gets a piece of the pie or not. I’d just rather they also make some key acquisitions themselves. Before some important IPs get snatched up.
@Friendly Btw, i do understand peoples position on consolidation. Im not for consolidation per se. But unfortunately this is how capitalism works.
Microsoft has made one of the biggest purchases ever, in any field, in and outside of the gaming industry. They have set the tone with its aggressive acquisitions. They've shown they're willing to spend vast amounts to control major publishers. It set a precedent.
Tencent is continually buying studios here and there. Im sure there are other companies talking to acquire publishers as we speak. Not just Sony. So regardless on being against consolidation, its gonna happen.
And if Sony doesn't safeguard their position, they might risk other giant companies swooping in and thereby losing control over valuable IPs.
Sony already have too much influence in the anime space. This is bad news and will hurt everyone in the long-run
This would be terrible. Sony already has so much anime control, they should not be getting more. Also Spike Chunsoft would be closed the first chance they got
Turns out Kadokawa actually has had a big hit due to a cyber-attack (ransomware+data leakage) this last year that has had a significant effect on business. Also, despite ER DLC, their gaming division has actually had much smaller sales than expected. Bottom line, despite everyone loving From Soft... the parent company may be looking a little weaker than expected. There's an interesting financial reporting here. The quote they use in their corporate reporting is "We are developing a structure to expand the scope of in-house publishing for console and PC games"... doesn't scream selling the business to me... but could be a bigger investment from Tencent (16% ownership) or Sony (14% ownership)... or Microsoft????
This has a feeling of being mis-reporting, or wishful thinking (or some mischevious rumouring).
The bigger picture here is that Sony might have a monopoly in the anime and manga industry. If it's just FromSoft, I don't mind but this can be quite concerning.
Sony owns crunchyroll how on earth did I get a 3 month free trial with gamepass then 🤣 kinda mad 🤣🤣 although was deffo a good business move that was couple year back n I'm still subbed (and never leaving )😎
They are all as bad as each other. So many Ip's now locked behind hardware or subs services by a handful of businesses.
Now that would be interesting.from software is huge.we will see.word up son
@Shinnok789 Sony closed studios that weren't performing and losing money. I get that it affects many people, but from the perspective of a business, how is that not a justified decision to make?
They also have a good track record with letting studios do their thing, even with studios they closed. Im pretty sure, if this deal goes through, they are just gonna let FromSoftware cook.
Regarding your GAAS argument, i think Sony thinks they need a successful live service. With a successful title they can fund their other games, especially since its now clear that profit margins are small, because of high development costs. They see almost other publisher have a succesfull live service title, and while i dont agree, i can understand their reasoning of trying to make one themselves.
Your last point i agree with, i hate this ‘show, dont tell’ strategy of them. Just let us see the roadmap.
@Friendly bro crying about this when his PureXbox comments were foaming at the mouth over the Activision garbage, amazing stuff.
I'm tired of all this consolidation. But this will likely happen like the Bungie deal giving them some autonomy, due to Sony looking to buy not PlayStation...
This is purely for the manga and anime things. I don't think Sony is really that interested in FromSoftware.
Junko Enoshima as new PlayStation mascot is a win I think.
I am not a fan of industry consolidation, but this one actually makes sense and is the righting of a wrong since Sony foolishly let From Software (and Quantic Dream, for that matter) get away all those years ago. Sony can't sit idly by while their competitor buys up the whole industry.
I never hated the. Bungle acquisition. But while I'm not a fan of the industry being consolidated, I understand this. I don't think this hurts the industry. But we'll see.
@1UP-HUSKY
It's a win-win in this regard.
Not a fan of consolidation but with Microsoft, Embracer and Tencent buying up most the market then I don't blame Sony from doing the same. They need to continue to grow to survive, not be content with what they have whilst everyone else gets more IP's.
That would be a huge get if true.
@UltimateOtaku91 Yeah i'm not a fan either but Sony has no choice right now.
Wow the Dark Souls 3 Remaster rumor suddenly makes sense why if this is true. Would be in line with Sony’s PS5 initiatives
My only concern with this is the sequel purgatory Sony seems to put all of their most talented devs in.
I would hate to see Fromsoft just churn out dated engine fueled games like multiple elden ring sequels. I thought Sekiro was such a refreshing take on their formula that it's kind of stale when they just go back to what amounts to just Demon Souls with a different skin. That aside though Fromsoft needs some serious technical upgrading to occur.
Sony seems so overtly focused on boring iterative sequels based on board room decided "safe bets," that they've lost so much of the diverse gaming catalogue and unique experiences that once made them great. Now it's sequels that are essentially the same game over and over again, taking 7 years to make, alongside shameless cash grab hardware releases and squeezeing extra cash out of their fan base in any slime way possible.
The more Microsoft tightens their grip, the more star systems will slip through their fingers…
Insane!!!! We would own souls, that is HUGE!!!
@Shakybeeves
"We"
Anyone that is in favor of this, I don't understand how after seeing MS and still not understanding that centralization is bad in any industry
@KundaliniRising333 While i totally agree with the safe bets and sequel arguments. I also have to acknowledge the fact that original games are very risky. Push Square actually published an article about this recently. About smaller original games not seeming to sell very well.
Japan studios for example, while i agree Sony should have more games like those in their repertoire. I cant ignore the fact that those games apparently didn't do very well commercially.
Dont get me wrong, im not saying i dont want more original games as well. I actually do. But i get that its definitely a hard choice to make and they need to make some of these safe bets. Especially in an industry where most people play just a few key games, like GTA, CoD and Fortnite.
Remember, Concord is an original title.
I don't believe further consolidation of two industries already plagued by it is a good thing.
The only incentive FromSoft has is additional capital - in a time where excessive budgets, wasteful spending and misguided publisher priorities have caused a number of closures. Leave them be, they don't need the money.
From an manga/anime perspective, Sony has made their stance on wanting to appeal to global markets clear. All too often this means homogenization. Not a big anime fan, but it would be a shame to see a distinct medium watered down.
Cue all of the people saying that acquisitions are great and how this is a great move from Sony and how much of a good fit this is and how Sony is only doing this because Microsoft bought Zenimax and ABK. 😴
This kind of sucks if it ends up happening.
Acquisitions are disgusting but I’ll admit It’s a good investment and a good fit for a lot of reasons.
They should acquire Square Enix and manage them properly
@Shakybeeves Okay, and how exactly would that benefit anyone?
@__jamiie Consolidation isn't great. But happens in every industry. Especially in bloated ones, like the gaming industry. But Microsoft started setting the tone by aggressively acquiring major publishers and spending amounts of money never before seem in this industry. And in any industry for that matter.
Its only natural that Microsofts competitors will need to take notice and possibly make moves of their own.
Not necessarily with the aim to further consolidate, but to maintain their competitive edge, especially as they see giant companies being able to outspend them.
@PuppetMaster This sound like neither one of those guys ideas, and is definitely more of the parent company idea rather than SIE.
@LogicStrikesAgain It's the two faced approach that some people take that offends me. It's disgusting behaviour until their favourite console manufacturer is doing the buying.
Then it's fine and people start making wishlists of other studios they want to see acquired.
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