Sony is reportedly in talks to acquire Kadokawa, the Japanese media giant that owns FromSoftware, the renowned developer behind Elden Ring, Armored Core, and Sekiro: Shadows Die Twice. This potential deal could bring FromSoftware's iconic franchises under Sony’s umbrella, further strengthening the company’s position in the gaming industry.

FromSoftware is celebrated for popularising the Souls genre with hits like Demon’s Souls, Dark Souls, Bloodborne, and the record-breaking Elden Ring. The studio has also ventured into action and mecha combat with Sekiro and Armored Core 6. Sony, which has been expanding its PlayStation first-party lineup through a series of acquisitions, already owns 2% of Kadokawa and 14% of FromSoftware, making the company a prime acquisition target.

Kadokawa’s reach also goes beyond gaming, encompassing anime, manga, TV, and film. Its notable subsidiaries include Acquire (Octopath Traveler), Spike Chunsoft (Danganronpa), Gotcha Gotcha Games (RPG Maker) and popular manga and light novel platform Book Walker. So, acquiring Kadokawa would bolster Sony’s anime and entertainment divisions, complementing its existing ownership of Crunchyroll and Funimation. And while both Sony and Kadokawa have declined to comment, reports suggest a deal could be finalised soon.

However, it should be noted that despite this exciting prospect, PlayStation fans may need to manage expectations. Since the buyout is being pursued by Sony Group, not Sony Interactive Entertainment (PlayStation’s parent company), FromSoftware may remain independent, with its current release practices staying as is. Such an arrangement already has a precedent in Sony’s relationship with Aniplex, which independently publishes games for various platforms.

Nonetheless, there is always the chance that Sony could integrate FromSoftware into PlayStation’s first-party studios, leveraging its expertise to strengthen PlayStation’s existing gaming portfolio whilst absorbing Kadokawa’s other assets into its broader entertainment business. Either way, the next few weeks will prove pivotal for both companies, shaping the future of these highly regarded gaming and entertainment brands.