Sony Interactive Entertainment's decision not to bring Demon's Souls to North America is the primary reason FromSoftware partnered with Bandai Namco for Dark Souls, according to former Sony executive Shuhei Yoshida.
Speaking during his keynote address at the CEDEC industry conference in Japan, Yoshida detailed Sony's early reservations about the 2009 title. At the time, Demon's Souls had a limited initial Japanese run of just 20,000 shipped copies, and the company did not expect the game to break even on development costs. Yoshida recalled trying the title for himself in 2008, a year before its launch, and failing to make much progress after two hours—concluding that it was "what an unfriendly game" it was.
Because Sony published the game in Japan, Demon's Souls retained its console-exclusive status there. However, strong sales and word-of-mouth in Japan eventually led Atlus and Bandai Namco to handle distribution in overseas regions.
After realizing FromSoftware had created something special, Yoshida stated that Sony offered to publish their next project, Dark Souls. By then, the offer came too late. FromSoftware declined due to Sony's lack of support on Demon's Souls, clearing the way for Bandai Namco to publish the breakout 2011 hit.
Reflecting on the missed opportunity, Yoshida noted: “I’d like to believe—although it might just be wishful thinking—that our not remaining involved ultimately led to a better outcome for the game industry and for gamers.” Sony later partnered with FromSoftware again for 2015's Bloodborne on the PlayStation 4, but the earlier fracture ultimately allowed the studio's broader library to expand across multiple platforms including PC.