Sony Buys 10% of ‘Elden Ring’ Owner for $320 Million


Japanese electronics giant Sony has further expanded its stake in the entertainment industry by purchasing a 10% stake in Kadokawa Corporation, the media conglomerate behind the critically acclaimed game “Elden Ring.” The deal, valued at 50 billion yen ($320 million), highlights Sony's continued investment in gaming and animation.

Kadokawa, known for its anime production, manga publishing, and gaming ventures, announced the partnership in a joint statement with Sony. The deal cements Sony as Kadokawa's largest shareholder, with the transfer of 12 million new shares set to take effect on January 7, 2024.

A Strategic Alliance for Global IP Expansion

The alliance aims to maximize the global value of both companies’ intellectual properties (IP). Sony and Kadokawa, which have collaborated on numerous projects over the years, see this as an opportunity to strengthen their synergy in the gaming and anime sectors. Sony’s 2021 acquisition of Crunchyroll, a leading streaming service for Japanese anime, aligns with this strategy.

The Elden Ring Connection

Kadokawa owns FromSoftware, the creators of “Elden Ring”, a dark fantasy RPG developed in collaboration with George R.R. Martin, the author of “Game of Thrones.” The game became a cultural phenomenon upon its release, solidifying its place as one of the most influential titles in modern gaming.

Sony's Broader Vision

This move comes as Sony enjoys a surge in profits, driven by its gaming and music divisions. The company recently launched the PlayStation 5 Pro, though its pricing has stirred mixed reactions among gamers. The acquisition of Kadokawa shares is part of Sony’s broader strategy to dominate the gaming, anime, and IP landscapes.

This strategic partnership could redefine the future of gaming and animation, with fans eagerly anticipating the next big project from this powerhouse collaboration.