Kadokawa's CEO Survives Shareholder Vote Amid Pressure to Capitalize on Elden Ring
Kadokawa's CEO, Takeshi Natsuno, has narrowly survived a shareholder vote following mounting pressure from activist investor Oasis Management. The shareholder meeting, reported by Reuters, highlighted the growing tension between Natsuno and Oasis, which has now become Kadokawa's largest shareholder with a 15.25% stake. Oasis has also expressed plans to increase its stake further, signaling its intent to push for more aggressive strategies from the company.
The activist investor argues that Kadokawa has not fully leveraged the financial potential of Elden Ring, one of the most successful video games in recent history. The game, developed by FromSoftware — a subsidiary of Kadokawa — has sold over 30 million copies globally. With the release of the Elden Ring Tarnished Edition in August and the upcoming expansion Shadow of the Erdtree (2024), the franchise continues to grow in popularity and revenue. Despite this, Oasis claims that Kadokawa is not reaping the full benefits of its ownership of FromSoftware.
Activist Investor Calls for Strategic Shift in Publishing
A key point of contention between Oasis and Kadokawa is the publishing strategy for Elden Ring. While FromSoftware handles the game's publishing in Japan, Bandai Namco oversees international distribution. This arrangement, according to Oasis, limits Kadokawa's profit margins. The activist investor is pushing for Kadokawa to self-publish FromSoftware's games globally, believing it would significantly boost the company's revenue.
Oasis has also criticized the lack of strategic investment in FromSoftware, which it views as Kadokawa's most valuable asset. "FromSoftware is a globally recognized studio with a loyal fanbase and a proven ability to create blockbuster titles," Oasis said. "Yet Kadokawa continues to leave a meaningful share of the economics from these titles with third-party publishing partners, creating a significant and ongoing loss of value for all of Kadokawa’s stakeholders."
Oasis Seeks to Elevate FromSoftware's Role in Kadokawa's Future
Despite rumors of potential acquisitions of FromSoftware by other gaming giants, Oasis has made it clear that it does not seek to sell the studio. Instead, it wants FromSoftware to be the central driver of Kadokawa’s long-term growth. "Its employees, creators, and fans deserve ownership and leadership that are fully committed to helping the studio realize its extraordinary global potential," Oasis emphasized.
The activist investor is urging Kadokawa to provide FromSoftware with the ambition, investment, and strategic focus it deserves. This includes a stronger presence in international markets and a more direct role in the publishing and marketing of its games.
FromSoftware's Leadership Reassures Fans
Earlier this month, Hidetaka Miyazaki, the celebrated director and creative force behind FromSoftware's hit games, addressed the shareholder pressure on Kadokawa. Reassuring fans, Miyazaki stated that FromSoftware can still "freely make the kind of games we want to make without excessive interference." This comment has helped ease concerns among the gaming community about potential changes to the studio's creative direction.
FromSoftware has several exciting projects in the pipeline, including the Elden Ring Tarnished Edition and the new action title The Duskbloods, set for release later this year. While Elden Ring 2 is not currently in development, Miyazaki has left the door open for future possibilities. Additionally, a movie adaptation of Elden Ring is reportedly in the works, further expanding the franchise's reach.
