A significant number of shareholders in Kadokawa Corporation, the parent company of Elden Ring developer FromSoftware, are reportedly seeking the removal of CEO Takeshi Natsuno. The primary catalyst for this demand is the perceived failure to fully capitalize on the immense success of Elden Ring and its related titles, a phenomenon described by activist investor Oasis Management as "profit leakage."
Oasis Management, which has become Kadokawa's largest single shareholder with nearly 14% of the company, is spearheading the call for Natsuno's ouster. Despite Natsuno's apparent strong standing, having previously garnered support from 90% of shareholders, Oasis argues that Kadokawa has not adequately captured the financial benefits stemming from FromSoftware's acclaimed titles. The firm points to Kadokawa's reliance on external publishers for global game releases, such as Bandai Namco for Elden Ring, as a key reason for this "meaningful share of the economics" being left with third parties.
Elden Ring has achieved remarkable sales figures, exceeding 30 million copies by April 2025, with the subsequent "Shadow of the Erdtree" expansion selling an additional 10 million and "Elden Ring Nightreign" contributing another five million. However, Oasis contends that Kadokawa has not translated these impressive sales into maximum profit due to its publishing strategy. The investor group has publicly stated that Kadokawa "continues to leave a meaningful share of the economics from [its] titles with third-party publishing partners, creating a significant and ongoing loss of value for all of Kadokawa stakeholders."
Oasis has previously advocated for a more aggressive strategy to capture the full value of FromSoftware's output, noting that the company itself had previously committed to self-publishing. The activist investor group is calling for transparency, discipline, and a clear plan outlining how Kadokawa intends to improve its gaming economics, emphasizing that this does not necessitate immediate self-publishing for every title.
Beyond the Elden Ring issue, shareholders are reportedly dissatisfied with other aspects of Natsuno's leadership. A data leak in 2024 resulted in significant financial losses for the company. Additionally, a potential acquisition by Sony, which investors had hoped for, materialized as a smaller "strategic alliance" with Sony taking a 10% stake. While Natsuno reportedly survived an annual general meeting, the final vote count, expected in the coming days, may still force significant changes if his support has waned considerably. Oasis believes broader improvements in governance, capital allocation, cost discipline, and board oversight are also necessary at Kadokawa.