FromSoftware attracting Sony and Tencent to invest significant sums in the company is an important example of power. Both gaming giants have been involved in acquisitions and investments in gaming companies.
Investing in the makers of Elden Ring is another pie that could have a bigger impact in the coming days.
On September 1, parent company Kadokawa Corporation announced the results after issuing a new share round. Tencent had acquired 16.25%, although the acquisition is in the name of Sixjoy.
Sony was the smaller investor of the two, with 14.09%. Both giants are now majority shareholders of the company, which has become a household name for their soul mate titles.
While deals aren’t surprising these days, this one seems different. Typically, Tencent and Sony have invested in different types of companies. The aim of the former is undoubtedly skewed towards games that rely on the live service model, with its massive involvement in Riot.
However, the opportunities for all three parties involved are huge, and each can benefit from the other.
Note: This article is subjective and reflects the opinion of the author.
FromSoftware can use resources and experience that Sony and Tencent bring
For starters, this isn’t a deal like Bungie or Xbox’s potential acquisition of Activision Blizzard. Contrary to those deals, FromSoftware has only sold a portion of its shares and the studio retains its autonomy. However, there may be room for some new avenues for them to explore.
BREAKING NEWS: Sony/PlayStation & Sixjoy/Tencent buy some of Elden Ring, Souls and Armored Core developer FromSoftware. Tencent will be the 2nd largest shareholder with 16.3%, while Sony will own 14.1% = 30.4% OR 36.4 billion JYEN. Kadokawa remains majority shareholderThread 1/8 https://t.co/lQNzoBVZ7d
Tencent owns some of the world’s most active live service games. Be it League of Legends and Valorant on PC or Pokemon Unite on mobile, the Chinese conglomerate has some great names on its top-grossing list.
As for Sony, they need no introduction as they have been a critical player in the console market for decades. The PlayStation brand has become a name to be reckoned with and the console giant has had ties to FromSoftware in the past. After all, who can forget the cult hit Bloodborne?
Following the success of Elden Ring, fans have been eagerly awaiting what the Japanese studio will produce next. With this investment comes a new shot in the arm in the field of finance.
However, the studio has not been short of cash following the pivotal success of its latest IP. Bandai Namco has even expressed interest in expanding it beyond the realm of gaming.
The main benefit that FromSoftware could gain from the deal is in the form of new ventures. Some fans believe that the studio has been limited to a similar lineup of games so far. By getting someone like Tencent, FromSoftware can look into making a live service game.
It’s far fetched to think that the Japanese studio will engage in such a thing, given the kind of titles they’ve produced. Stranger things have happened in this industry, though.
The studio’s relationship with Sony could grow after the recent decision. They collaborated on Bloodborne and fans have been asking for a new game in the series for a while now. While the acquisition of shares does not guarantee anything new, it increases the likelihood of that happening.
As for Tencent and Sony, they can now be part of the commercial success as FromSoftware is on the rise. Among other things, the duo will receive a share in the profits.
It goes way beyond that, though, as the two can also look into partnerships and collaborations with games created by the Japanese studio.
More importantly, it keeps the door open for one or both to acquire more of the studio in the future. While it may seem unlikely, fans have already seen more quirky happenings in the video game industry.
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