Investor Dispute Threatens the Future of Elden Ring Developer

If there’s one thing that defines FromSoftware’s games, it’s their challenging nature. Titles like Dark Souls are notorious for their punishing difficulty and sometimes frustrating mechanics. While Elden Ring made waves in the gaming community and achieved significant success, one can easily envision an executive looking at those impressive figures and pondering what could have been. What if the studio opted for a more accessible approach? What if there were additional avenues for monetization?

This scenario isn’t just a thought experiment.

Although FromSoftware is often linked with major gaming companies, 70% of the studio is actually owned by Kadokawa Corporation. Recently, Kadokawa has found itself embroiled in a public dispute with Oasis Management, an investor holding 13.76% of Kadokawa’s shares. On June 7, Oasis released a letter urging Kadokawa’s shareholders to vote against the reappointment of its current CEO, Takeshi Natsuno.

In their notice, Oasis Management expressed frustration over years of attempts to persuade Kadokawa to “fully maximize” its portfolio’s potential, highlighting FromSoftware as Kadokawa’s most valuable asset. Essentially, they believe that FromSoftware’s strategy could be refined to enhance profitability.

Some gamers might recall Oasis Management from 2014, when they suggested to Nintendo that charging $0.99 for Mario to jump higher could be a viable monetization strategy. This was more of a commentary on innovative revenue models than a serious proposal.

Oasis Management contends that Kadokawa is missing out on revenue by collaborating with external partners like Bandai Namco for games like Elden Ring. They laid out their vision for improvement:

The way forward is clear. Kadokawa should streamline its publishing efforts, diversify its genre offerings, invest more in titles with real growth potential, enhance creator development, and boost digital and international distribution. Crucially, management needs to set clear and measurable KPIs so shareholders can assess real progress.

On June 8, Japan’s Fair Trade Commission found FromSoftware in violation of the Freelancers Protection Act, citing Kadokawa’s mishandling of payment deadlines for over 100 freelancers. Oasis Management used this ruling to bolster their case against Kadokawa’s leadership.

“In light of the decline in performance and poor management oversight under CEO Natsuno, it’s time for a management change,” Oasis stated in a press release.

According to reports, Kadokawa held a vote in May that supported Natsuno’s position. Shareholders are set to convene on June 24 for the company’s annual general meeting, where Oasis Management is urging them to vote against Natsuno.

In Kadokawa’s 2025 earnings report, the company indicated its intention to enhance FromSoftware’s earnings in line with Oasis Management’s suggestions. “FromSoftware will steadily advance initiatives aimed at maximizing earnings by developing titles using its own capital and optimizing the business scheme, including its publishing structure,” the report stated.

Elden Ring’s director and FromSoftware president, Hidetaka Miyazaki, recently commented on the situation, stating he had no further details to share. However, he did reflect on the studio’s creative direction.

“I wouldn’t say there aren’t areas for improvement, but we are able to freely create the games we want to make without excessive interference,” Miyazaki noted. “If we have been able to create something valuable for our users up until now, I believe one of the major sources of that has been the environment we have been working in.”

Should Oasis succeed, they have specific criteria for Natsuno’s successor.

“Kadokawa’s next CEO should have a proven track record in global IP monetization, operational discipline, sound capital allocation, and strong governance,” Oasis outlined in their public notice.

FromSoftware’s open-world fantasy RPG is set to launch on a new platform this summer.