Kadokawa CEO Survives Investor Challenge as Elden Ring Strategy Faces New Scrutiny

Kadokawa CEO Takeshi Natsuno will remain in his role after investors failed to remove him, but the vote showed that support for his leadership has weakened sharply. The parent company of FromSoftware faced pressure from activist investors who argued that Kadokawa had not done enough to maximise the commercial success of Elden Ring.

Natsuno kept his position with 59.68% support, a clear majority but a major drop from the 90% approval he received during the previous year’s vote. The result means Kadokawa avoids an immediate leadership change, though the lower margin is likely to keep pressure on the company’s management and its approach to FromSoftware’s future.

The investor campaign focused on claims that Kadokawa allowed “material profit leakage” by not expanding Elden Ring quickly enough through more projects, products, or releases. That argument has raised concerns among fans who worry that stronger investor influence could push FromSoftware toward faster development cycles or safer sequel driven planning.

Investors Wanted Kadokawa to Do More With Elden Ring’s Success

Elden Ring became one of the most successful games in FromSoftware’s history and significantly increased global attention around the studio. The game has continued to grow through major expansions, multiplayer projects, a Nintendo Switch 2 release, and a planned film adaptation.

However, some investors believe Kadokawa should have moved more aggressively to turn that success into higher revenue. Oasis Management, which held 11.89% of Kadokawa’s shares as of March, led the effort to replace Natsuno.

The group argued that Kadokawa had not fully capitalised on the Elden Ring brand. Another investor advisory group also supported a leadership change, saying the company should consider finding a replacement even if that process required time.

FromSoftware’s Creative Pace Could Become a Bigger Issue

The concern is not simply about one executive. It is about how Kadokawa may manage FromSoftware in the years ahead.

FromSoftware has built its reputation by taking its time and allowing its teams to develop projects around their own ideas. That approach has led to games such as Demon’s Souls, Dark Souls, Bloodborne, Sekiro: Shadows Die Twice, and Elden Ring. Each release has had familiar elements, but the studio has generally avoided turning its work into a yearly franchise.

A leadership change could have created pressure for more frequent releases, sequels, or projects designed around familiar trends. Investors may see that as a way to increase revenue, but it could also create risks for a studio that has benefited from careful development and creative freedom.

The company has already faced reported pressure from investors to focus on safer sequels. FromSoftware’s refusal to follow that route suggests the studio wants to protect its ability to pursue new ideas.

Elden Ring Has Already Expanded Beyond Its Original Release

The argument that Kadokawa failed to build on Elden Ring’s success is open to debate. The franchise has already received a major expansion, moved into multiplayer through Elden Ring Nightreign, and is preparing for a new Switch 2 version. A film adaptation is also in development.

That does not mean Kadokawa cannot create more opportunities around the brand. However, there is a difference between expanding a successful series carefully and treating it as a product that needs constant new releases.

For now, Natsuno remains in charge, but the narrow vote makes one thing clear. Kadokawa’s investors will continue to watch how the company handles FromSoftware, Elden Ring, and the studio’s next major projects.