Activist Investors Push FromSoftware to Self‑Fund Elden Ring

In a high‑stakes move, activist investor Oasis Management is launching a takeover bid against Kadokawa, the parent company of FromSoftware, the studio behind iconic titles such as Elden Ring and Dark Souls. The crux of Oasis’s argument is that Kadokawa has been handing over too much of its lucrative gaming assets to external partners, notably Bandai Namco, and is missing out on the profits that could be generated by publishing FromSoftware’s own games.

Oasis’s presentation, delivered to investors last month, accuses Kadokawa CEO Takeshi Natsuno of mismanagement, citing the company’s failure to capitalize on FromSoftware’s global successes. The activist firm claims that under Natsuno’s tenure, FromSoftware has repeatedly left substantial revenue on the table by allowing Bandai Namco and other publishers to handle overseas releases.

The deck underscores the phenomenal performance of Elden Ring, which was published by FromSoftware in Japan but released overseas through Bandai Namco. According to Oasis, more than 90 % of the game’s sales came from international markets, meaning Kadokawa reaped only a fraction of the worldwide profits. Oasis argues that the shift toward digital distribution has made self‑publishing easier than ever, and that Kadokawa has the talent and infrastructure to do so. The activist firm has been pushing for a self‑publishing strategy since 2020, and it even appeared in Kadokawa’s 2023 management plans before being removed from later presentations.

Oasis concludes that, under a simplified scenario, a new hit title from FromSoftware could generate over 30 million units worldwide. Without a self‑publishing model in place, Kadokawa would again miss out on the economic value that should rightfully belong to its shareholders.