Elden Ring DLC Aids FromSoftware's Recovery

Elden Ring and its Shadow of the Erdtree expansion pack are proving to be significant revenue drivers for Kadokawa, FromSoftware's parent company, despite a recent cyberattack. This article examines the financial impact of the breach and the remarkable success of Elden Ring in offsetting those losses.

Kadokawa's Cyberattack and Financial Rebound

A June 27th cyberattack by the Black Suits hacking group targeted Kadokawa, resulting in the theft of sensitive data, including business plans and user information. The July 3rd confirmation of the breach revealed compromised personal data for all Dwango employees, internal documents, and some data from affiliated companies.

The incident cost Kadokawa approximately 2 billion yen ($13 million), leading to a 10.1% decline in net profit year-on-year. However, the company still reported strong first-quarter financial results (ending June 30, 2024), showcasing resilience following the June 8th attack that initially disrupted services. Business operations have since fully recovered, with publishing and IP creation sectors expecting a gradual return to normal shipping volumes by mid-August. Major affected web services are also back online.

Elden Ring's Triumphant Performance

The video game sector experienced exceptional growth, achieving 7,764 million yen in sales—a substantial 80.2% increase compared to the previous year. Ordinary profit in this sector soared by 108.1%. This phenomenal performance is largely attributed to the immense success of Elden Ring and its Shadow of the Erdtree DLC, which significantly boosted the gaming division's financial results. The games acted as a powerful counterbalance to the negative impact of the cyberattack.