Tencent Holdings has expanded its investment in Kadokawa, the parent company of acclaimed game developer FromSoftware. The Chinese tech giant recently acquired an additional 1.11% stake, raising its total ownership from 6.86% to 7.97%.
This move comes amid increasing competition for influence over Kadokawa, with Sony also strengthening its position in the company.
Tencent’s Growing Investment in Kadokawa
The share purchase was made through SixJoy Hong Kong Limited, a Tencent subsidiary. According to a report submitted to the Kanto Finance Bureau, the acquisition is part of an ongoing capital and business alliance between Tencent and Kadokawa.
Tencent initially invested JPY 30 billion (around $200 million) in Kadokawa back in 2021, securing a 6.86% stake at the time. With this latest increase, Tencent remains one of Kadokawa’s largest shareholders.
Sony Becomes Kadokawa’s Largest Shareholder
While Tencent increased its stake, Sony made an even bigger move. In December 2024, Sony boosted its ownership in Kadokawa from 2% to nearly 10%, making it the company’s largest shareholder. The JPY 50 billion ($320 million) investment was aimed at strengthening Sony’s collaboration with Kadokawa and maximizing the global reach of their intellectual properties.
Meanwhile, South Korea’s Kakao Investment holds 8.44%, making it the second-largest shareholder.
Kadokawa’s Influence in the Gaming Industry
Kadokawa is best known for being the parent company of FromSoftware, the studio behind critically acclaimed games such as Dark Souls, Bloodborne, Sekiro: Shadows Die Twice, and Elden Ring.
Interestingly, both Tencent and Sony already own stakes in FromSoftware. In 2022, Sony Interactive Entertainment and Tencent’s SixJoy collectively acquired 30.34% of the studio’s shares. Sony holds 14.09%, while Tencent controls the remaining 16.25%. Despite these investments, Kadokawa remains the majority owner, with a 69.66% stake in FromSoftware.
What This Means for the Gaming Industry
Tencent’s latest investment underscores China’s growing influence in the Japanese gaming market, while Sony’s increased stake signals its strong commitment to exclusive content. With FromSoftware at the center of this battle, the future of the company’s next big game could be shaped by these power moves.
Could this impact future FromSoftware projects? Will Sony seek further control? Let us know what you think!
