Sony buying Kadokawa would have major implications for FromSoftware, but those ramifications would only be the tip of the iceberg.

Japanese media powerhouse Kadokawa said on Wednesday it had received a letter of intent to buy its shares, a day after a Reuters report that Sony was in talks to acquire the developer of the acclaimed "Elden Ring" fantasy game sent its stock soaring.

Sony may acquire Kadokawa, giving them full control of the anime production system. If the deal goes through, Kadokawa's goal is to produce 40 anime titles per year by 2023.

But for Kadokawa themselves, they have shared a statement confirming that the potential deal between them and Sony has yet to be confirmed. Noting that they “received an initial letter of intent to acquire the Company’s shares,

FromSoftware parent company Kadokawa Corporation has reportedly been pushing Sony Group towards a purchase, according to a new report. We first saw speculations last week that Kadokawa set the stage for a Sony acquisition to fend off a hostile takeover from foreign companies,

Kadokawa and Sony have reportedly been discussing an acquisition for several years. Sony is only interested in "strategic investments" in Kadokawa's anime and video game properties. Kadokawa, meanwhile,