Kadokawa Shareholders Revolt as Elden Ring Success Exposes Profit Leakage

In 2026, the corporate battle surrounding Kadokawa Corporation and its celebrated subsidiary FromSoftware has become a striking case study in how creative triumph can expose strategic weakness. The company behind Elden Ring, one of the most successful video games of the decade, is now facing a shareholder rebellion. According to a Reuters report, a substantial number of Kadokawa shareholders want CEO Takeshi Natsuno removed. The reason is not that Elden Ring failed, but that it succeeded so enormously that investors believe Kadokawa has failed to capture the full financial value of that success. Oasis Management, described as one of Japan's most active activist investors, has become Kadokawa's largest single shareholder with nearly 14% of the company, and it is openly campaigning for Natsuno's ouster.

🎮 The irony of success

Natsuno once appeared secure at the top of Kadokawa. He earned the support of 90% of shareholders at the company's 2025 annual general meeting. But Oasis Management has since accumulated nearly 14% of Kadokawa and is now its largest single shareholder. The activist investor argues that Natsuno has squandered the commercial momentum of FromSoftware's biggest franchise. Elden Ring had sold more than 30 million copies as of April 2025, three years after release. The Shadow of the Erdtree expansion added another 10 million copies, and the multiplayer spin-off Elden Ring Nightreign contributed roughly five million more. By any measure, those are enviable numbers.

Title	Sales milestone	Context
Elden Ring	More than 30 million copies	As of April 2025, three years after launch
Elden Ring: Shadow of the Erdtree	10 million copies	Expansion
Elden Ring Nightreign	5 million copies	Multiplayer spin-off

📉 Profit leakage and the publishing problem

The core dispute is what Oasis calls profit leakage. Under Natsuno's leadership, Kadokawa has allegedly failed to capitalize on Elden Ring's success by partnering with external publishers for game releases. Elden Ring is published by Kadokawa, via FromSoftware, in Japan, but Bandai Namco serves as the global publisher. That arrangement means a meaningful share of the economics from FromSoftware titles flows to third-party publishing partners instead of staying within Kadokawa. In a press release calling for Natsuno's removal earlier this month, Oasis described FromSoftware as a crown jewel asset. The investor said Kadokawa continues to leave a meaningful share of the economics from its titles with third-party publishing partners, creating a significant and ongoing loss of value for all Kadokawa stakeholders.

🏦 What Oasis Management wants

Oasis has long advocated privately and directly for a more ambitious approach to capturing the full value of FromSoftware's success. The activist investor points out that management previously committed to self-publishing under its prior mid-term plan. Kadokawa raised money in 2022, diluting shareholders, specifically to pursue self-publishing. But CEO Natsuno has since retreated from that commitment without providing shareholders with a clear explanation, economic framework, or decision criteria for how and when Kadokawa will improve gaming economics.

Oasis is not demanding that every title be self-published immediately. Instead, it is asking for:

• Transparency about publishing decisions

• Discipline in capital allocation

• A credible plan for capturing more value from FromSoftware

• Stronger Board oversight

• Broader improvements in governance and cost discipline

Beyond Natsuno, Oasis believes Kadokawa requires systemic changes. But as the top executive, Natsuno is the natural starting point for activist pressure.

⚔️ Other headaches for Kadokawa's CEO

Elden Ring is not Natsuno's only problem. A 2024 data leak cost the company millions and reportedly damaged trust with shareholders. Investors were also unhappy that a hoped-for acquisition by Sony turned into a relatively small strategic alliance in which Sony took only 10% of Kadokawa. That outcome fell far short of the full buyout that some investors had anticipated. The combination of profit leakage, governance concerns, and strategic disappointment has made Natsuno vulnerable.

📊 The AGM outcome and the road ahead

A new Reuters report revealed that Natsuno did in fact survive the 2025 annual general meeting and will maintain his position. However, the actual results of the vote will not be known for several days. If his support has dropped off sharply, Natsuno may be forced to implement many of the changes desired by Oasis and other activist investors anyway. In 2026, the standoff remains a defining test for Kadokawa. The company must decide whether to continue relying on external publishing partners or to build a more direct global publishing capability. FromSoftware's crown jewel status is undeniable, but creative brilliance alone does not guarantee that a parent company captures the value it creates. For Kadokawa, the Elden Ring saga is no longer just about a game. It is about who controls the economics of one of the most important assets in the global gaming industry.