Elden Ring DLC Fuels FromSoftware’s Resurgence

FromSoftware's parent company, Kadokawa, reveals that Elden Ring and its Shadow of the Erdtree DLC significantly boosted its gaming sector performance, offsetting losses from a major cyberattack. Let's delve into the details of the security breach and Kadokawa's financial report.

Elden Ring's Success Mitigates Cyberattack Impact

$13 Million in Losses Due to Cyberattack

On June 27th, the Black Suits hacking group claimed responsibility for a data breach targeting Kadokawa, stealing business plans and user data. Kadokawa confirmed on July 3rd that the breach compromised Dwango employee information, internal documents, and some data from affiliated companies.

Gamebiz reports that this security breach cost Kadokawa approximately ¥2 billion (roughly $13 million), resulting in a 10.1% decline in net profit year-over-year. However, the company still reported strong first-quarter financial results (ending June 30, 2024), its first report since the June 8th cyberattack.

Kadokawa has fully restored its business operations. While publishing and IP creation sectors experienced temporary disruptions, a gradual recovery is underway, with normal operations expected by mid-August. Affected web services are also returning to normal.

The gaming sector, however, showed remarkable resilience. Sales surged to ¥7,764 million—an impressive 80.2% increase year-over-year—with ordinary profit climbing by 108.1%. This exceptional performance is largely attributed to the phenomenal success of Elden Ring and its Shadow of the Erdtree expansion.