Sony Insider Claims To Reveal Why Sony Wants To Purchase Kadokawa
An alleged Sony insider claims to reveal why the company wants to purchase Kadokawa, the parent company of Elden Ring developer FromSoftware.
Reuters initially reported that Sony was in discussions to purchase Kadokawa, which is the parent company of video game developers Spike Chunsoft and FromSoftware as well as manga and light novel publisher Kadokawa Shoten, which publishes popular titles such as Sword Art Online, Mobile Suit Gundam, Konosuba, Record of Lodoss War, Neon Genesis Evangelion, Code Geass, Cowboy Bebop, and more.
The outlet noted, “The talks between the two sides are ongoing and, if successful, a deal could be signed in the coming weeks, the sources said.”
READ: Rumor: 'Dark Souls 3' Remaster In Development
Kadokawa CEO Takeshi Natsuno confirmed that Sony did inquire to purchase the company in a press release.
He said, “There are some articles on the acquisition of KADOKAWA Corporation (hereinafter "the Company") by Sony Group Inc. However, this information is not announced by the Company. The Company has received an initial letter of intent to acquire the Company's shares, but no decision has been made at this time. If there are any facts that should be announced in the future, we will make an announcement in a timely and appropriate manner.”
As for why Sony wants to purchase Kadokawa, YouTuber Endymion shared what his insider divulged to him.
He said, “From what I’m told by my source, the reason why Sony Japan wants to own Kadokawa and FromSoftware is because they are extremely frustrated by the constant under performances of their western led projects. We’re talking things like God of War, The Last of Us, and, of course, Concord being a big thorn in their side right not and how that all went down.”
“Sony Japan is very angry that what used to be a promising western push by their teams over in Sony America that they’re no longer making the big hits that they were accustomed to having before,” Endymion continued. “As I’m told Kadokawa entering PlayStation’s brand and in turn FromSoftware is seen as a massive opportunity in Sony Japan’s eyes to vastly strengthen and rebuild their PlayStation brand into what they deem is important and what PlayStation should stand for as a platform in the future.”
He added, “So they see things like Elden Ring’s success, the constant love for properties like Dark Souls or Sekiro to be something that should be intrinsically tied to what Sony Japan wants to continue and foster in the future.”
A little bit later after claiming that there is a bidding war for Kadokawa between Tencent and Sony, Endymion revealed that his insider told him that Sony “wants to completely change their outlook going forward when it comes to how they make their games and who they are making those games for. They want to be seen as a Japanese first developer creating experiences more in line with what they used to be known for as opposed to now.”
There are likely other reasons as to why Sony wants to purchase Kadokawa as well. One of those could be they want to have more original IP. Obviously, acquiring FromSoftware provides them with original IP, but more importantly the company’s publishing arm and the various manga and light novels gives them even more original IP.
And Sony CFO Hiroki Totoki made it abundantly clear the company wanted more original IP in an interview with Financial Times. He said, “Whether it’s for games, films or anime, we don’t have that much IP that we fostered from the beginning.”
He added, “We’re lacking the early phase (of IP) and that’s an issue for us.”
In that same interview, it was revealed that one of the ways Sony was trying to acquire that original IP was through co-producing anime productions whether through Sony proper or its subsidiary Crunchyroll.
Crunchyroll President Rahul Purini told the outlet, “Given the constraints within the ecosystem, there is opportunity for various companies, including Sony, to see if there is a way to add additional capacity, bring additional talent and potentially leverage digital technology in the creation process [of anime].”
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