After acquiring a significant stake in Kadokawa, Hong Kong-based hedge fund Oasis Management Company has reportedly been involved in a struggle with other shareholders, pushing them not to support Takeshi Natsuno’s reelection as company president.
As part of its argumentation, Oasis Management apparently outlined so-called “profit leaks,” particularly when FromSoftware is involved. According to Inven Global, Oasis singled out the Dark Souls developer as Kadokawa’s most crucial asset, which, as it claims, is bleeding money by striking publishing deals with third parties who retain most of the profits in the largest markets, i.e., overseas.
FromSoftware notoriously handles publishing mostly in Japan alone, while it relegates international territories to giant publishers like Bandai Namco and Activision. Since it now has a strong enough position and funding, the studio should switch to self-publishing, Oasis argues, though its claims were refuted and denied by the rest of the board.
