- Kadokawa’s new Q3 report further clarifies the strategic capital and business alliance with Sony in a new plan.
- The report mentions that Sony will be investing in and publishing various Kadokawa titles and other media franchises.
- Kadokawa is looking to further expand its game publishing scope by producing higher-quality titles on a bigger scale.
After Microsoft acquired Activision, all eyes were set on new rumors detailing a merger between Sony and Kadokawa. While the buyout did not end up happening, both giants formed a business alliance to grow the value of both companies’ franchises.
Now, the FromSoftware parent company has revealed a detailed plan that explains how this collaboration will benefit both parties. The plan is divided into IP creation and IP distribution phases.
Kadokawa will focus on creating new gaming franchises while collaborating with Sony Group Corporation and securing investments.
Why it matters: Kadokawa’s new report explains how collaborating with Sony will benefit its gaming and other media portfolios.
Kadokawa’s earnings results for Q3 explain that Sony will invest in and publish various Kadokawa titles and other media IPs moving forward. In other words, the FromSoftware owner wants to expand its game publishing scope by acquiring game developers to create new IPs.
The report also highlights that Kadokawa will start to ‘consistently launch titles that are of higher quality.‘ The company’s gaming segment has already seen a 38.6% increase year-to-date in sales and a 44.5% increase in profits during the quarter.
For those not in the know, Sony has already acquired 10% of Kadokawa’s shares for $331.2 million to form this partnership. Forging an alliance saved both companies the hassle of traditionally merging companies and dealing with international regulators.
On the flip side, both companies will earn benefits by fostering deeper collaboration on games and other franchises.
Do you think existing and new Kadokawa franchises will benefit from this massive aid from Sony Interactive Entertainment? Let us know your thoughts in the comments below, or join the discussion on the Tech4Gamers forum.
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Shameer Sarfaraz has previously worked for eXputer as a Senior News Writer for several years. Now with Tech4Gamers, he loves to devoutly keep up with the latest gaming and entertainment industries. He has a Bachelor’s Degree in Computer Science and years of experience reporting on games. Besides his passion for breaking news stories, Shahmeer loves spending his leisure time farming away in Stardew Valley. VGC, IGN, GameSpot, Game Rant, TheGamer, GamingBolt, The Verge, NME, Metro, Dot Esports, GameByte, Kotaku Australia, PC Gamer, and more have cited his articles.
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