Kadokawa CEO Takeshi Natsuno has weathered a shareholder vote that could have led to his ousting, as activist investor Oasis Management continues to pressure the company over its handling of the immensely successful Elden Ring franchise. Oasis Management, which recently increased its stake in Kadokawa to 15.25% making it the largest shareholder, argues that the Japanese company is not maximizing profits from FromSoftware's blockbuster titles.
FromSoftware, the developer behind Elden Ring, is a subsidiary of Kadokawa. Elden Ring has achieved global sales of over 30 million copies, with its success further bolstered by the recent expansion Shadow of the Erdtree and the upcoming multiplayer spin-off Elden Ring Nightreign. Oasis Management contends that Kadokawa fails to capture the full economic potential of these games by outsourcing international publishing rights.
While FromSoftware self-publishes Elden Ring in Japan, Bandai Namco handles its distribution globally. Oasis Management has voiced its desire for Kadokawa to bring all its game publishing operations in-house on a worldwide scale. The investor group also noted that a significant investment from Sony, amounting to a 10% stake in Kadokawa, has yet to yield substantial returns. Oasis emphasizes that FromSoftware is Kadokawa's most valuable asset and should be the primary driver of its long-term growth, managed with the ambition and investment it deserves.
Despite the shareholder pressure, Hidetaka Miyazaki, director at FromSoftware, previously assured fans that the studio would continue to have the creative freedom to develop its games without undue interference. FromSoftware has The Duskbloods slated for release later this year, in addition to the Elden Ring Tarnished Edition. While Elden Ring 2 is not currently in development, Miyazaki has not ruled out the possibility for the future, and an Elden Ring movie is also reportedly in the works.