Takeshi Natsuno has successfully retained his position as CEO of Kadokawa, the parent company of Elden Ring developer FromSoftware. The decision comes after a tense annual investor meeting where the company's leadership faced scrutiny from activist shareholders, primarily Oasis Management.
Oasis Management, now Kadokawa's largest shareholder with a 13.76 percent stake, had argued that the company experienced "profit leakage" despite the significant success of Elden Ring. The activist firm pointed to the publishing arrangement for the critically acclaimed game, where FromSoftware published in Japan and Bandai Namco handled overseas releases, as a missed opportunity for greater profit. Elden Ring has sold over 30 million units globally and garnered numerous Game of the Year awards.
Institutional Shareholder Services, an investor advisory firm, had reportedly backed the call for a leadership change, suggesting that while finding a replacement for Natsuno might take time, the challenge was worthwhile. Supporters of Natsuno and the company's board argued that removing him during a period of significant reform would create unnecessary chaos. Natsuno had previously received 90 percent support at the prior year's investor meeting.
The dispute highlights Kadokawa's recent financial performance. The company reported a return on equity of just 0.5 percent in 2025, a stark contrast to the 9.4 percent achieved in 2022, the year Elden Ring was released. Kadokawa has also faced challenges including a data breach in 2024 and investigations into its freelance worker conditions.
Despite Natsuno retaining his CEO position, the increased scrutiny from Oasis Management and other investors may still influence Kadokawa to invest more heavily in major game development projects similar to Elden Ring. However, the broader industry context suggests such endeavors are increasingly complex due to rising development and consumer costs.