Sony's potential acquisition of Elden Ring maker Kadokawa could be disastrous if it happens

Sony is reportedly in discussions to acquire Kadokawa, the Japanese media giant behind the hit game “Elden Ring,” according to an exclusive by Reuters.

The PlayStation console creator is expected to finalize the deal in the coming weeks, as it already owns a 2% stake in Kadokawa and an interest in FromSoftware, the game’s developer behind popular titles like Armored Core VI. The Japanese company also owns Spike Chunsoft, Acquire, and a lot of anime and manga IPs.

It does indeed feel like a bullet to hit back at Microsoft’s acquisition of Activision Blizzard, especially after the successful release of Call of Duty: Black Ops 6 which also launched via Game Pass. The acquisition would then give Sony more control over FromSoftware as Kadokawa has held a controlling stake in the company since 2014.

Kadokawa also has an extensive asset in the anime and manga space, including Crunchyroll and ownership of anime press outlets like Anime News Network. The company, however, has been facing quite a lot of challenges recently from leadership changes and a cyberattack between June and August 2024, which affected over 250,000 people.

Sony’s empire in the anime industry could face regulatory hassles as, well, there’s a potential monopolization should this acquisition go through.

The Japanese tech giant now has control over key players like Aniplex, which handles anime production, and Crunchyroll, which distributes anime globally. Through Aniplex, Sony has ties to top studios like A-1 Pictures and CloverWorks. Crunchyroll also has over 11 million paid subscribers, although these companies operate under different Sony divisions.