What does it mean for Tencent and Sony to become majority shareholders of FromSoftware?

FromSoftware has delivered some amazing successes with Elden Ring being the most recent one (Images via FromSoftware)
FromSoftware has delivered some amazing successes, with Elden Ring being the most recent one (Images via FromSoftware)

FromSoftware attracting the likes of Sony and Tencent to invest significant amounts in the company is a major showcase of power. Both gaming giants have been involved with acquisitions and investments in gaming companies.

Investing in the Elden Ring makers is a different kettle of tea that could have a more profound impact in the coming days.

On September 1, parent company Kadokawa Corporation announced the results after issuing a fresh round of shares. Tencent had acquired 16.25%, although the acquisition has been registered against the name of Sixjoy.

Sony was the minor investor among the two, with 14.09%. Both giants are now majority shareholders in the company, which has become a renowned name for their soulslike titles.

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While deals these days aren't surprising, this one seems different. Typically, Tencent and Sony have invested in different types of companies. The former's objective is undoubtedly skewed towards games that rely on the live service model, with its massive involvement in Riot.

However, the opportunity for all three parties involved is massive, and each can benefit from the other.

Note: This article is subjective and reflects the author's opinion.


FromSoftware can utilize resources and experience Sony and Tencent bring

For starters, this isn't a deal like Bungie or Xbox's potential acquisition of Activision Blizzard. Unlike those deals, FromSoftware has sold only a part of its shares, and the studio will retain its autonomy. However, there can be scope for some new avenues for them to explore.

Tencent has its hands on some of the world's most active live service games. Whether League of Legends and Valorant on PC or Pokemon Unite on mobile, the Chinese conglomerate has some great names on the top-grossing list.

As for Sony, they need no introduction, having been a critical player in the console market for decades. The PlayStation brand has become a name to reckon with, and the console giant has had ties to FromSoftware in the past. After all, who can forget the cult hit that is Bloodborne?

Following the success of Elden Ring, fans have been eagerly waiting to see what the Japanese studio manufactures next. With this investment, there will be a fresh shot in the arm in terms of finances.

However, the studio has had no shortage of funds following the pivotal success of its latest IP. Bandai Namco has even expressed interest in expanding it beyond the realms of gaming.

The most significant advantage that FromSoftware could obtain from the deal is in the form of new ventures. Some fans feel that the studio has so far been restricted to a similar set of games. Getting someone like Tencent will allow FromSoftware to look into creating a live service game.

It's farfetched to think that the Japanese studio will engage in something like that, given the kind of titles they have produced. However, stranger things have happened in this industry.

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The studio's relationship with Sony could grow closer following the recent decision. They worked together on Bloodborne, and fans have requested a new game in the series for a while. While the acquisition of shares doesn't guarantee anything new, it increases the likelihood of it.

As for Tencent and Sony, they can now be a part of the commercial success as FromSoftware is on the rise. The duo will have a share in the profits for one thing.

However, it goes much beyond that, as the two can also look to tie up partnerships and collaborations with games made by the Japanese studio.

More importantly, it keeps the door open for either or both to acquire more of the studio moving forward. While it might seem unlikely, fans are already seen more peculiar happenings in the video game industry.