We’re following a developing story that could reshape how a major publisher manages one of gaming’s biggest franchises. Per Insider Gaming, which cites a report by Reuters, shareholders are demanding the resignation of Kadokawa Group CEO Takeshi Natsuno, alleging he failed to capitalize on the runaway success of Elden Ring. Take this with a pinch of salt — but if true, the dispute exposes some blunt tensions between creative success and corporate returns.
What Was Reported
According to Insider Gaming, shareholders are calling for Takeshi Natsuno to step down after accusations that Kadokawa did not properly translate Elden Ring’s commercial success into company profits. Elden Ring is described as one of the most popular souls-like games, "boasting millions of sales across various platforms," and its ecosystem has expanded with spinoff titles and a confirmed spinoff movie.
Despite that popularity, Kadokawa’s financial performance is under scrutiny. The report says Kadokawa’s return on equity fell from 9.4% in 2022 to 0.5% last year. Leading the shareholder push is Oasis Management of Hong Kong, which reportedly owns a 13.76% stake and is described as the largest shareholder. Oasis alleges there has been "material profit leakage" arising from Kadokawa managing publishing in Japan while Bandai handles overseas publishing.
The situation is reportedly heading for a showdown at Kadokawa’s annual general meeting, which is scheduled for this Wednesday. For now, Takeshi Natsuno remains in his position, but the AGM could be contentious if shareholders press their case.
The Source & Credibility
Who Is Saying What
- Insider Gaming is the outlet reporting the story on our radar, and it cites a Reuters report as its origin for key claims.
- Oasis Management is named as the leading shareholder pushing for the CEO’s removal and is said to hold a 13.76% stake.
- Proxy advisors are reportedly weighing in: a report from Institutional Shareholder Services is quoted as saying, "While it may take time to find a replacement for Natsuno, this is a challenge worth accepting."
- Another proxy advisor, Glass Lewis, is said to recommend shareholders back Oasis’s proposal.
We’re cautious here: these are secondhand claims relayed via Insider Gaming from Reuters. The coverage includes direct quotes attributed to proxy reports and Oasis, so the documentary trail seems traceable — but as ever, treat the details as alleged until confirmed by official filings or statements from Kadokawa or Oasis.
What It Could Mean
If the shareholder push succeeds, the immediate implication would be leadership change at Kadokawa Group. The proxy advisory note quoted by the report explicitly acknowledges replacement could take time, calling it a "challenge worth accepting." That language suggests investors are prepared for potential turbulence if they believe long-term returns will improve as a result.
Another possible consequence — if investors are correct about the company's publishing arrangement — is closer scrutiny of the way publishing rights and revenues are split between domestic and overseas partners. Oasis Management claims a "material profit leakage" because Kadokawa handles Japan publishing while Bandai manages overseas publishing. If true, that allegation points toward corporate decisions that may limit Kadokawa’s ability to fully monetize a global hit like Elden Ring.
We should stress the conditional language here. These are alleged failures and proxy advisors' recommendations; the CEO has not been removed and the AGM is the focal point where any immediate action would play out.
Why This Matters
Beyond the boardroom drama, this matters for anyone who cares about how major IP is managed. Elden Ring is depicted as a franchise with enormous reach — "millions of sales," spinoff titles, and a confirmed spinoff movie — yet investors allege Kadokawa hasn’t captured commensurate profit. If true, that disconnect highlights how corporate structures and publishing deals can blunt the financial windfall of cultural hits.
For fans, developers, and industry watchers, the story is worth monitoring because it could lead to changes in how a parent company supports FromSoftware and future entries or adaptations in the franchise. For investors, it’s a reminder that commercial success in sales doesn't always equal optimized corporate returns.
We’ll be watching the AGM closely and will report further as more details emerge. For now, take these reports with a pinch of salt — but don’t ignore the warning signs raised by shareholders who say a global hit hasn’t translated into expected profits.
