FromSoftware parent company Kadokawa Corporation wants to expand the scope of its publishing efforts. In its latest fiscal report, the company said it’s “developing a structure” to bolster its console and PC publishing business.
The Japanese conglomerate also intends to double down on mobile projects. “For mobile games, we are pursuing new development studios to increase the number of titles and improve quality,” it added.
It’s unclear whether Kadokawa’s mobile push will result in the company pursuing acquisitions or building its own internal studios. Kadokawa said Elden Ring continues to drive “high growth” within its gaming business.
The title has sold over 25 million copies since launching in 2022. FromSoftware recently expanded the fantasy RPG with the acclaimed Shadow of the Erdtree DLC, and Kadokawa believes the long-term success of Elden Ring can provide a framework for future releases.
“Due to DLC sales, the popularity of the original Elden Ring accelerated once more, contributing to increased ‘repeat’ sales,” said the company. “We will strive to maximize the lifetime value of popular game titles such as Elden Ring.”
Outlining its production pipeline, Kadokawa said it currently has 20 console titles in development alongside six mobile projects.
Tencent’s stake in the business
Kadokawa will be able to implement its expansion plans with the backing of Chinese conglomerate Tencent. The League of Legends owner bought a 6.86 percent stake in Kadokawa in 2021, with the deal being pitched as a “capital and business alliance.” More recently, Kadokawa purchased Octopath Traveler developer Acquire Corp. to create new game franchises.
“To strengthen the ability to create IP in games as part of our game business strategy, we have made Acquire Corp. into a wholly-owned subsidiary,” said Kadokawa when announcing the acquisition.
“By acquiring the company, which has produced million-seller hit titles, we expect to generate synergies with our existing game-related subsidiaries, strengthen our planning and development capabilities Groupwide, and enhance our lineup of console games.”