Why a 130-Year-Old Kabuki Company Is Entering Video Games

For 130 years, Shochiku has been a pillar of traditional Japanese entertainment, managing theaters for kabuki, a classical form of Japanese dance-drama, and producing films. Now, the company is placing a bet on an industry far removed from its roots: video games.

Shochiku launched a startup accelerator program ahead of this year's Tokyo Game Show, offering $100,000 in funding for game technology companies across Japan and Asia. The initiative marks a departure for the venerable entertainment house, which only began investing in video games last year.

Two companies secured the initial funding: Blacknut Cloud Gaming and AI animation startup Ememe Co., each receiving $50,000. Blacknut offers a subscription-based cloud gaming service accessible through PCs, mobile devices and smart TVs, targeting casual gamers. Ememe develops generative AI tools that automate 3D character animation for game developers.

At a Demo Day in Tokyo before the game show, Shochiku fielded pitches from 200 applicants working on projects ranging from game trend analytics to personalized gaming experiences and generative AI applications for 3D modeling. Selected startups also met with major investors, including Sony Ventures and Sega, to discuss partnerships and additional funding.

How Traditional Entertainment Companies Are Investing in Gaming Technology

The move represents a strategic shift for Shochiku, which has focused on supporting game-enhancing technologies rather than publishing games directly. The company has backed titles including MiSide, BrokenLore and Return from Core since entering the gaming space.

Founded in 1895 to manage kabuki theaters, Shochiku expanded into film production in 1920 and contributed several innovations to Japanese cinema, including the country's first "talkie." The company has also distributed major anime titles throughout its history.

Shochiku's accelerator reflects a broader trend in Japan, where companies outside the traditional gaming industry are increasingly investing in indie development and technology. The influx of support comes as local developers face global funding challenges, with venture capital investment in gaming declining in recent years.

The focus on generative AI and indie development could prove timely. Japan's gaming industry is grappling with rising development costs and shifting player preferences, making tools that improve efficiency and lower barriers to entry increasingly valuable.

Whether Shochiku's gamble pays off remains to be seen. But the company's willingness to venture into unfamiliar territory demonstrates how even century-old entertainment firms are adapting to an industry landscape transformed by technology.