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KADOKAWA Expands into Analog Gaming with Arclight Acquisition

As analog gaming gains momentum, KADOKAWA targets both domestic and international markets through strategic acquisition
Japan
k 9468.TSE Anime 20 Mid and Small Cap 2000 Games 75 Entertainment 100
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On April 26, 2024, KADOKAWA, a major player in the global entertainment industry, announced its acquisition of Arclight, a Tokyo-based game planning and manufacturing company. This move signifies KADOKAWA’s strategic expansion into the board game and trading card game (TCG) sectors.

Arclight, known for its popular “Cthulhu Mythos TRPG” series and other analog games, will operate under KADOKAWA as a subsidiary, enhancing its already diverse entertainment portfolio. The company also manages Hobby Station, a leading card game sales chain with 32 locations nationwide, and organizes the notable Game Market event.

Despite the dominance of digital gaming, the analog game market has shown significant growth. Japan’s domestic TCG market soared from just under 90 billion yen in 2018 to over 230 billion yen in 2022. KADOKAWA predicts the global board game market will more than double by 2036, indicating a robust future for non-digital games.

With over 100 employees, Arclight’s integration is poised to not only bolster KADOKAWA’s offerings in Japan but also to facilitate expansion into international markets, tapping into a rising global trend towards analog gaming. This acquisition aligns with KADOKAWA’s broader strategy of diversification and innovation within the entertainment sector, reinforcing its commitment to developing new content across various platforms.

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