Recently, a 'controversy' surrounding KADOKAWA has been causing a stir online.
It all began with a statement released by 'OASIS (Oasis Management)', an activist fund and the company's largest shareholder.
Activist funds—so-called 'activist shareholders'—are investors who hold a substantial stake in a company and aim to enhance corporate value (i.e. share price) by making recommendations to management or submitting shareholder proposals. In recent years, their activities have become increasingly active in Japan, and it is no longer uncommon for major companies to be targeted.
In the gaming industry, examples of companies facing management pressure from activist investors include GungHo Online Entertainment and Square Enix.
In broad terms, the content of its statement is that 'the current management team is responsible for KADOKAWA's poor performance'. Whilst listing various proposals for improvement, it is calling on other shareholders to vote against the reappointment of the current president at the Annual General Meeting to be held on 24 June, and consequently to vote in favour of its own proposals.
Naturally, KADOKAWA has refuted this outright, and the current situation is one of deepening conflict ahead of the meeting, with both parties releasing documents summarising their respective positions.
What has become a particular talking point amongst gaming fans this time is the fact that the statement contains a reference to the subsidiary FromSoftware.
FromSoftware, which continues to produce global hits such as 'ELDEN RING', is now one of the KADOKAWA Group's 'cash cows'. The statement positions the company as the 'most strategically important subsidiary', whilst pointing out that its value is not being fully utilised.
It is only natural that as the sums invested grow larger, the scrutiny from investors and management becomes more intense. It is no exaggeration to say that the recent trend towards conservative content and an over-reliance on sequels is a direct result of this 'can't afford to fail' situation.
So, in such an era, how do those actually working on the front lines of game development view the environment in which they find themselves?
With this in mind, Den Faminico Gamer reached out to FromSoftware, a company whose name was mentioned in the recent statement. We sent a brief email to Hidetaka Miyazaki, the company's president and the director of Elden Ring, to ask for his views.
What are the developers' thoughts on this recent controversy? We would like to present his comments here in their entirety.
Amidst the shareholder proposals concerning KADOKAWA, will FromSoftware still be able to create games freely?
automaton-media.com
