Key Takeaways
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Sony is discussing the acquisition of Kadokawa, the parent company of FromSoftware.
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The potential acquisition would give Sony ownership of several media brands, as well as video games.
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Sony's history of studio acquisitions, including some less successful purchases, could make this deal risky.
Sony is reportedly in talks to acquire Kadokawa, the parent company of Elden Ring and Dark Souls developer FromSoftware.
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The report comes from Reuters, which says Sony is looking to “add to its entertainment portfolio.”
Sony in acquisition talks with Kadokawa
Kadokawa may not be a household name in the Western world, but it is one of Japan's largest media conglomerates. The company owns a 70% stake in FromSoftware, Dragon Ball: Sparking Zero developer Spike Chunsoft, and dozens of anime, manga, and media brands.
Talks are ongoing between the two sides and a deal could be finalized “in the coming weeks,” according to Reuters.
Talks are ongoing between the two sides and a deal could be finalized 'in the coming weeks'.
The acquisition of Kadokawa will be the latest in a string of development studio acquisitions for Sony. Over the past few years, PlayStation creators have purchased Bungie, Insomniac Games, Haven Studios, and the recently shuttered Firewalk studio.
But while Sony seems keen on acquisitions, its track record isn't the best. The recently released Concord was heralded as one of the biggest flops in gaming history, leading to developers shutting down their doors and several other PlayStation-owned studios, including hundreds of employees from Bungie, who Sony reportedly 'overpaid' for. I recently faced layoffs. .
Once completed, the purchase will create a more equal relationship between PlayStation and Xbox maker Microsoft, which has made some major acquisitions of its own over the past few years. In 2022, Microsoft acquired Call of Duty owner Activision for $70 billion, and a few years ago it acquired Fallout and Skyrim developer Bethesda for $7.5 billion. It was announced that it had been acquired.
Elden Ring and Dark Souls may not be on the same commercial level as Call of Duty or Skyrim, but they will certainly be a feather in Sony's cap.
Sony and Kadokawa both declined to comment when asked by Reuters.
