FromSoftware may get pressured by new activist investor that just purchased 10% stake in parent Kadokawa

Aggressive investor group Oasis Management now has a 10% stake in Kadokawa Corp, the parent company of famed game developer FromSoftware.

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Oasis Management, a Chinese activist investment firm known for creating highly scrutinizing briefs that put lots of pressure on companies, has now upped its investment in Kadokawa Corp. Oasis became infamous among gamers for advising Nintendo to charge money for each individual jump in mobile game Super Mario Run.

According to industry analyst Dr. Serkan Toto, who is based in Japan, Oasis currently has a 10% stake in Kadokawa, the parent company of beloved game developer and hit-maker FromSoftware. Sony is currently the largest shareholder with 10.09%.

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Fans are worried that Oasis could put undue pressure on FromSoftware to add invasive and friction-reducing microtransactions into games like Elden Ring and the series' Nightreign multiplayer spin-off.

"Oasis is headquartered in Hong Kong and is one of the most established Japan-focused activist investors," Dr. Toto wrote on Twitter.

"These guys do not play around at all + previously shook up Japanese corporations such as Panasonic, Nintendo, Toshiba, Nissan, or even Toyota."

Thanks in large part to FromSoftware's efforts, Kadokawa remains one of the most distinguished companies in the games industry; Elden Ring is one of the only games on the market that can command such high DLC attach rates, and FromSoftware has spent decades earning the trust and expectations of its fans.

It's important to remember that Sony has invested in both parent company Kadokawa as well as FromSoftware itself. Sony purchased a 10% stake in Kadokawa, and a ~15% stake in FromSoftware, whereas Oasis' investment was only in Kadokawa itself.

Another distinction is that Kadokawa as a parent company oversees lots of products outside of video games, including manga and anime.