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The industry speculates on the implications of Sony’s acquisition of FromSoftware parent Kadokawa

In this post:

  • Officially, Sony has indicated interest in purchasing FromSoftware’s parent business, Kadokawa.
  • Sony aims to strategically improve its portfolio via combining acquisitions.
  • The possible acquisition may have a significant impact on the anime and gaming industries.

According to reports, Sony is thinking about acquiring Kadokawa, the parent firm of FromSoftware.

The acquisition is being considered by the worldwide entertainment giant as a way to strengthen its already strong portfolio.

The gaming and anime sectors are anticipated to be significantly impacted by Kodokawa’s takeover.The international corporation Sony was founded in the 1940s and has since grown and changed to focus on areas other than consumer electronics. With the development of PlayStation systems and movies, the corporation has diversified into gaming and entertainment.In the same vein, Sony has lately made acquisitions in an effort to broaden its product line and strengthen its position in the entertainment and gaming industries.

Sony looks at Kadokawa, the parent firm of From Software

Sony has been considering a possible acquisition of the Japanese media group Kadokawa, as first reported by Reuters.

Before Sony acknowledged the announcement, there were rumors that the business would be in negotiations to help with the Kadokawa acquisition.

When a Japanese news website, Weekly Bunshun, published the Japanese employee’s opinions about the likely takeover, the initial rumors were further cemented.

Kadokawa is well known for its contributions to the video gaming, publishing, and film industries.From Software, the publisher of the video games Souls and Elden Ring, is owned by the Japanese conglomerate.

Kadokawa owns several intellectual assets and is also well-known in the animation community.

The company’s broad collection of manga and anime made it a major force. Its popularity and financial success have increased as a result of several Kadokawa anime adaptations, including Oshi no Ko.

The Japanese corporation has significant influence over the worldwide anime market since it has also expanded its animerelated operations, including production finance and marketing.The acquisition of Kadokawa is thought to have profound effects on the gaming and animation industries.

Sony is anticipated to follow the example followed by other big businesses, such as Microsoft, which in 2023 paid $68.7 billion to purchase Activision-Blizzard. It is anticipated that the planned agreement will strengthen Sony’s control over the Japanese market and other emerging markets. The entertainment company currently owns Crunchyroll and Funimation, and the deal would give it more IPs, establishing it as an anime powerhouse with global reach.

Sony’s potential acquisition causes mixed reactions

News about the gaming empire acquiring Kadokawa resulted in a range of reactions from both gamers and industry players. Some Japanese employees under Kadokawa were critical of the deal and stated that it would severely impact the company’s independence.

Another section of employees said the acquisition was positive and would rejuvenate the company by improving discipline and removing incompetent staff members. In this context, Takeshi Natsuno, CEO of Kadokawa, was singled out for potential replacement if the acquisition went through.

A veteran Kadokawa employee said:

“The employees around me are happy about Sony’s acquisition. That’s because there are a certain number of employees who are dissatisfied with the Natsuno administration, which did not even hold a press conference after personal information was leaked due to a cyber attack.”

Additionally, gamers had differing opinions on Kadokawa’s possible takeover by Sony.

According to several gamers, the purchase would be a fantastic fit for Sony and would provide the game publisher with the best opportunity to continue operating in the face of industry uncertainty and the Japanese company’s present difficulties. Another group of fans, however, voiced doubt, believing that the purchase would make the Souls and Elden games unique to Sony.

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