FromSoftware Rebounds: Elden Ring DLC Launch

Elden Ring and its DLC Shadow of the Erdtree are apparently a “major impetus” for the performance of its parent company’s gaming division. Read on to learn more about the security breach and Kadokawa’s financial report for its gaming division.

Elden Ring and DLC Boost Kadokawa’s Game Sector SalesKadokawa’s Security Breach Results in $13 Million in Losses

On June 27, the hacking group Black Suits claimed responsibility for a cyberattack on FromSoftware’s parent company Kadokawa, stating they had stolen a significant amount of data, including business plans and user-related information. Kadokawa confirmed on July 3 that the breach included the personal information of all Dwango employees, internal documents, and some employee data from affiliated companies.

According to Gamebiz, Kadokawa Corporation suffered a data breach that cost the company approximately 2 billion yen, around $13 million, and caused a 10.1% decline in net profit compared to the previous year. Despite this, Kadokawa posted robust financial results for the first quarter of the fiscal year ending June 30, 2024. This marks Kadokawa's first financial report since the large-scale cyberattack on June 8, which disrupted several of the company’s services.

Fortunately, business operations have now been fully restored. In the publishing and IP creation sectors, shipping volumes for affected publications are expected to recover gradually in August, with daily shipments anticipated to return to normal by mid-August. Several major web services that were impacted are also set to resume normal operations.

The company's video game sector experienced substantial growth, with sales reaching 7,764 million yen—an 80.2% increase from the previous year—and operating profit up by 108.1%. This strong performance was primarily driven by Elden Ring and its Shadow of the Erdtree DLC, which provided a major boost to the gaming division.