Takeshi Natsuno survived a shareholder challenge Wednesday, but his grip on Kadokawa is visibly weakening as an activist investor escalates its campaign to overhaul how the Japanese company manages FromSoftware, the studio behind the blockbuster Elden Ring franchise.
Hong Kong-based Oasis Management, which emerged as Kadokawa's largest shareholder during the meeting, has already increased its stake to 15.25% and signaled plans to buy more. The fund's assault centers on a straightforward complaint: Kadokawa is leaving money on the table.
Elden Ring has sold 30 million copies since its 2022 launch, with an August release of Tarnished Edition expected to push that figure higher. Yet FromSoftware does not control the game's global distribution. Bandai Namco publishes internationally, a partnership that Oasis sees as a profit leak FromSoftware ownership should seal. In Japan, FromSoftware handles publishing directly.
"FromSoftware is Kadokawa's crown-jewel asset," Oasis said in a statement. "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."
The activist fund's push arrives as Sony's own 10% stake in Kadokawa has generated little tangible fruit. Oasis is not demanding a sale of FromSoftware, a prospect that has fueled industry gossip for years. Instead, it wants the studio positioned as the central engine of Kadokawa's growth, with the investment, ambition, and strategic focus befitting a global powerhouse.
FromSoftware director Hidetaka Miyazaki addressed the investor pressure this month, offering reassurance to fans concerned about the studio's independence. "We can still freely make the kind of games we want to make without excessive interference," he said.
The studio has two major releases lined up for later this year: Elden Ring Tarnished Edition and a new action title called The Duskbloods. But questions loom about what follows. Miyazaki ruled out Elden Ring 2 as a near-term prospect in December, though he stopped short of closing the door permanently. An Elden Ring movie adaptation is in development.
Author Emily Chen: "Natsuno's survival masks a real power vacuum, and Oasis isn't bluffing about stacking its position."
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