“Elden Ring”: Sony and Tencent join From Software
“Elden Ring” developer From Software is giving up 30 percent of its shares to Sony and the Chinese gaming company Tencent.
Sony and Tencent have bought a 30 percent stake in Japanese video game developer From Software. This was announced by the Kadokawa Corporation, which owns From Software. The Japanese media company remains the main owner of the studio with 70 percent, which was recently able to celebrate great success with “Elden Ring”.
Together, Sony and Tencent will pay 260 million euros for shares in From Software. Sony buys 14.09 percent of the shares, Tencent through its subsidiary Sixjoy 16.25 percent of the shares. According to the announcement, the Kadokawa Corporation hopes that the transaction will result in further growth, particularly in international markets.
From Software is one of the most important development studios in the world. FromSoft is known, as the fans call it, for high-difficulty third-person action games. The studio’s Dark Souls titles defined a genre and cultivated a dedicated fan base. The Dark Souls games are hugely influential within the industry and have inspired numerous imitators including Star Wars Jedi Fallen Order, The Surge and Nioh.
Success of “Elden Ring”
“Elden Ring”, the latest game in From Software’s portfolio, became a mega hit: the action game sold more than 16 million copies by the end of June. With “Elden Ring”, From Software was once again able to significantly increase its audience compared to previous titles.
From Software has worked with Sony in the past, with titles such as “Demon’s Souls” and “Bloodbourne” appearing exclusively for the group’s Playstation consoles. Tencent and Sony are the two largest video game companies in the world, ahead of Microsoft.
The video game market is currently undergoing strong consolidation: Microsoft is buying Bethesda and Activision Blizzard, Sony is buying Bungie, Embracer is buying parts of Square Enix, and there are also rumors about EA’s takeover. Reasons for this development include the rising prices for game development and the massive profit opportunities in the top-grossing entertainment media industry.
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