As the conflict between Kadokawa and its largest shareholder, the fund Oasis Management, continues over the potential removal of leadership, FromSoftware President Hidetaka Miyazaki has personally weighed in on the controversy. His comments have drawn significant attention, as he is one of the few major Japanese developers who rarely makes public appearances outside of official events.

Largest Shareholder Oasis: "FromSoftware's Profits Are Leaking"

Recently, the Hong Kong-based activist fund Oasis Management launched the 'A Better KADOKAWA' campaign in May, urging other shareholders to vote against the reappointment of President Takeshi Natsuno at the annual general meeting. Oasis Management began aggressively acquiring shares in March 2026, surpassing Sony to become Kadokawa's largest shareholder, and has since increased its stake to 13.76%.

The Kadokawa board has firmly pushed back, supporting the president's retention, which has intensified the standoff ahead of the meeting. Gamers are also closely following the situation, as Oasis specifically highlighted Kadokawa's subsidiary, FromSoftware, in its proposal, labeling the creator of Elden Ring as the company's most strategically important asset.

Oasis pointed to a 'profit leak,' stating, 'FromSoftware's business model relies on collaborating with publishers like BANDAI NAMCO and Activision, who take a disproportionately large share of revenue in exchange for sharing development risks.'

Oasis argued that overseas publishers capture most of the value before royalties or profit sharing. Furthermore, they claimed that because FromSoftware has already secured sufficient capital through investments from companies like Sony and Tencent, it is fully capable of transitioning to self-publishing.

Self-Publishing: A Matter of Speed, Not Refusal

Kadokawa dismissed much of Oasis' criticism as baseless or rooted in a misunderstanding of the actual situation. The board officially formalized its opposition to the president's removal on May 14, citing the current president's leadership in business restructuring and the response to the 2024 cyberattack as justification for his retention.

Regarding publishing, the board explained that they determine whether to use internal or external channels on a case-by-case basis, considering factors such as contract terms for each IP. They argued that it is not a structure that can simply shift all titles to self-publishing overnight.

In practice, FromSoftware has maintained a structure where it handles domestic publishing in Japan itself, while outsourcing overseas publishing to external partners depending on the title or IP. FromSoftware handled domestic publishing for the Dark Souls series, Elden Ring, and Armored Core VI, while BANDAI NAMCO managed overseas services. For Bloodborne, where the IP rights belong to Sony, Sony handled distribution both in Japan and abroad, while Sekiro, developed in collaboration with Activision, was published internationally by Activision.

Additionally, in the case of Déraciné, Nintendo holds the rights and handles overseas publishing. For their first title, Demon's Souls, Atlus and BANDAI NAMCO handled separate publishing for North America and Europe.

This demonstrates that it is difficult to suddenly overhaul a system with such diverse distribution structures, IP rights, and contract conditions for every game.

Interestingly, Kadokawa has not rejected the idea of self-publishing itself. In its annual financial report last March, Kadokawa signaled a positive direction toward expanding self-publishing. The difference between the two sides is less about whether to transition, and more about the speed and timing.

In the Eye of the Storm: A Word from Hidetaka Miyazaki

How does the development team view this situation? In response to an inquiry from DenFamiNicoGamer, FromSoftware President and game director Hidetaka Miyazaki provided a direct answer.

He spoke about the core of game development. While noting that 'there is always room for improvement,' he stated that he is 'generally satisfied with the current development environment at FromSoftware' and that they are 'free to create the games we want without excessive interference.' He added that maintaining this environment, which allows the team to focus solely on game production, is the most important thing for both himself and the company.

Miyazaki clarified that these remarks were his personal opinion, not the company's, and that he was not in a position to know more than the publicly reported facts. He also noted that because many stakeholders are involved, it is difficult to provide a more in-depth answer.

Nevertheless, his words carry significant weight. While President Miyazaki is not a recluse who avoids all external exposure, unlike many popular Japanese developers, he rarely appears in public outside of official events like new title reveals or interviews. By stating that they are 'making games freely' at the height of this dispute, he has effectively addressed the primary concern of fans: that Oasis' pressure might undermine FromSoftware's creative independence or development direction. At least for now, that fear has not materialized.

Since this response is not a definitive conclusion to the dispute, things could still change. However, given that Kadokawa has maintained that its management policy is not swayed by individual shareholders, and that FromSoftware has a history of maintaining creative control through its own judgment, there remains an expectation that there will be no immediate major changes at FromSoftware.

'99 Cents for Mario to Jump Higher'... A History of Controversy

Meanwhile, for gamers familiar with Oasis' track record, the fund's policy suggestions for FromSoftware are viewed with skepticism.

Oasis founder and CIO Seth Fischer sent three letters to then-Nintendo President Satoru Iwata between 2013 and 2014. The 2014 letter, obtained by the Wall Street Journal and made public, was filled with demands from Oasis, as a Nintendo shareholder, for ways to recover losses while the company was underperforming.

Oasis cited shifts in the consumer entertainment market, the revenue of King (creators of Candy Crush Saga), and the explosive growth of mobile/digital platforms like Facebook's acquisition of WhatsApp. They argued that by removing the inconvenience of having to buy a dedicated Nintendo device, Nintendo could generate much higher profits from its IP, and even recommended acquiring studios to achieve this.

At the time, Nintendo dismissed the proposal, arguing that the rise of smart devices did not signal the end of consoles. However, what drew even more attention was a specific phrase included by Oasis. The document suggested that to help Nintendo understand how to generate greater profits, they should 'imagine having to pay 99 cents to make Mario jump a little higher..'

Although the sentence was intended to explain the potential of in-app purchase revenue models, its provocative nature turned it into a mocking meme within the gaming community, even after Nintendo eventually released mobile games and titles featuring in-app purchases. At the time, while some evaluated Oasis' arguments as valid, others criticized them for a lack of understanding of the gaming industry and for ignoring brand value risks.

However, some believe that Oasis' criticisms of other areas outside of gaming are valid. During President Natsuno's tenure, Kadokawa has faced poor mobile performance relative to the size of its IP portfolio, a decline in the competitiveness of Nico Nico Douga, and lackluster M&A results. Oasis' documents also pointed to the claim that a 'quantity-first' strategy—such as the declaration to produce 40 anime titles per year—has weakened the IP-generating power of their core businesses.

Given this complex situation, interest in the motion to remove Director Takeshi Natsuno at the Kadokawa shareholder meeting on the 24th has grown significantly.