Speaking in a recent podcast, former PlayStation executive Shuhei Yoshida has dropped quite the revelation about FromSoftware’s early genre-defining days. While Sony and FromSoftware might be cozying up with a fresh $318 million partnership today, there was a time when the studio flat-out refused to work with PlayStation again.
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The story behind this refusal paints an interesting picture of missed opportunities and redemption. Back when Demon’s Souls was just finding its feet, Sony made a decision that would shape gaming history—though not quite in the way they expected. Now, with Sony becoming Kadokawa’s largest shareholder, the transformation of this relationship feels almost poetic.
How Sony’s early Demon’s Souls snub led to a surprising FromSoftware decision
The tale of Demon’s Souls and Sony’s initial skepticism reads like a cautionary business story. Originally planned for worldwide release under PlayStation’s banner, early playtests had Sony executives reaching for their red pens. The game was deemed “too difficult” to fuel worldwide success—a judgment that would age about as well as milk in summer.
Speaking to the Sacred Symbols podcast (via VGC), former Sony Interactive Entertainment president Shuhei Yoshida revealed a particularly interesting detail about what happened next:
FromSoftware was already working on the sequel, but they were so disappointed with how PlayStation treated them, we wanted to work with them again but they passed on it.
That rejection sent FromSoftware straight to Bandai Namco, eventually resulting in Dark Souls—a franchise that would redefine action RPGs and spawn an entire subgenre.
Meanwhile, Atlus and Bandai Namco saw potential where Sony didn’t, stepping in to publish Demon’s Souls in the West, where it found surprising success. All in all, those same audiences that Sony thought wouldn’t “get it” ended up embracing the challenge with open arms.
We have huge respect for Miyazaki and we were able to work with them again. Bloodborne is one of his best games.
Fortunately, bridges weren’t burned beyond repair. FromSoftware eventually partnered with Sony again for Bloodborne—though PC gamers might argue that’s become its own kind of curse, given the game’s stubborn PlayStation exclusivity. Eight years later, we’re still waiting for that port announcement.
A new chapter in the Sony-FromSoftware saga
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Fast forward to 2025, and oh, how the tables have turned. Sony concluded 2024 by dropping $318 million to become Kadokawa’s largest shareholder, securing a 10% stake in FromSoftware’s parent company. This isn’t just another corporate handshake—it’s a power move that puts Sony in the publisher’s seat for future releases.
In Kadokawa’s Q3 Report, They Outline Their Strategies with their Capital Business Alliances: Sony/PlayStation & Kako Piccoma + The Videogame Segment’s Success & Outlook!
🔵 Kadokawa will use their expertise to Create New IP while Sony/PlayStation will help Fund, Distribute, &… pic.twitter.com/pZCirIkYCW
— William R. Aguilar (@WilliamRAguilar) February 6, 2025
The implications are massive for the gaming industry. While Elden Ring Nightreign remains safely under Bandai Namco’s umbrella, the future of FromSoftware’s releases looks increasingly tied to Sony’s influence. For Xbox and PC players, this partnership raises some uncomfortable questions about platform availability going forward.
This newfound alliance isn’t just about games either. Sony and Kadokawa’s partnership extends to anime, movies, and TV shows. It’s a far cry from the days when Sony executives couldn’t see the potential in a challenging action RPG.
What do you think about this dramatic turnaround in Sony and FromSoftware’s relationship? Are you excited about their future collaborations, or worried about potential platform restrictions? Share your thoughts in the comments below!
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