Kadokawa CEO Elden Could Lose His Position Due to Ring Crisis
Elden Ring has become one of the biggest success stories in the gaming world in recent years. Developed by FromSoftware, the game has achieved millions of sales, expanded its brand, and evolved into a much larger universe with spin-off projects. Normally, such success would translate to a strong financial performance and satisfied shareholders for the parent company. However, things don’t seem to have gone that way for the Kadokawa Group. According to a new report, some shareholders believe the company hasn’t profited enough from this massive success.
Elden Ring Success Deemed Insufficient for Kadokawa
While Elden Ring significantly increased FromSoftware’s global brand awareness, it hasn’t eased the pressure on CEO Takeshi Natsuno within the Kadokawa Group. According to Reuters, shareholders argue that Natsuno hasn’t adequately utilized one of the company’s biggest gaming brands. Therefore, the CEO’s future could become a major topic of discussion at the upcoming general meeting.
At the heart of this pressure is Hong Kong-based Oasis Management. Oasis, one of Kadokawa’s largest shareholders, claims the company has failed to translate the success of Elden Ring into profitability. The report states that Kadokawa’s return on equity has declined significantly, causing considerable concern among investors.
Another key point of contention is broadcasting rights and revenue sharing. Oasis argues that while Kadokawa manages the broadcasting processes in Japan, Bandai Namco’s involvement in international broadcasting has created a “significant profit leakage” for the company. Therefore, the issue isn’t simply whether the game was successful, but how effectively that success impacted Kadokawa’s coffers.
Natsuno remains in his position for now, but some consultant reports support the shareholders’ demand for change. Institutional Shareholder Services acknowledges that finding a new CEO may take time, but states that it is a worthwhile process. Glass Lewis is also reported to support Oasis’s proposal. While Elden Ring was a great victory for the players, it has turned into an unexpected crisis for the Kadokawa administration.
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