Shareholders in Bandai Namco are pushing the publisher to spin off FromSoftware, the studio behind Elden Ring and Dark Souls, into an independent entity. The pressure comes from investors who believe FromSoftware operates more profitably as a standalone studio than as part of Bandai Namco's broader portfolio.
The argument centers on valuation. FromSoftware generated massive revenue from Elden Ring, which sold over 20 million copies and became one of the most commercially successful games ever released. Shareholders contend that the studio's astronomical performance gets diluted within Bandai Namco's consolidated financials, artificially suppressing the parent company's stock price. A separation would allow investors to value FromSoftware's gaming division independently, potentially unlocking shareholder value.
This reflects a broader trend in the gaming industry where successful studios command premium valuations. Take-Two owns Rockstar Games, which generates substantial revenue through Grand Theft Auto. Microsoft owns Bethesda. When studios deliver blockbuster franchises consistently, financial markets reward them differently than diversified conglomerates do.
FromSoftware's track record supports the shareholder case. Beyond Elden Ring's dominance, the studio maintains a hardcore fanbase through Dark Souls remasters, Sekiro, and Armored Core 6. The studio's design philosophy commands respect across the industry. Director Hidetaka Miyazaki's leadership has proven creatively and commercially consistent.
However, Bandai Namco publishes most FromSoftware titles and funds development. A divorce would disrupt that relationship. The publisher would lose direct access to one of gaming's most reliable hit factories. FromSoftware would need a new publisher or direct distribution strategy.
The shareholder campaign reflects investor confidence in FromSoftware's independence potential. Whether Bandai Nam