Elden Ring Expansion Revitalizes FromSoftware Post-Hack

Elden Ring and its Shadow of the Erdtree expansion pack are key drivers behind the robust performance of Kadokawa's gaming division. This article delves into the impact of a recent cyberattack and analyzes Kadokawa's financial report.

Elden Ring and its DLC Power Kadokawa's Gaming Sector Growth

$13 Million in Losses from Kadokawa's Data Breach

On June 27th, the Black Suits hacking group claimed responsibility for a significant cyberattack targeting Kadokawa, FromSoftware's parent company. The attack resulted in the theft of substantial data, including business strategies and user information. Kadokawa confirmed on July 3rd that the breach compromised personal data of all Dwango employees, internal documents, and some employee data from affiliated companies.

According to Gamebiz, the breach cost Kadokawa approximately 2 billion yen (roughly $13 million), leading to a 10.1% decline in net profit year-over-year. However, Kadokawa reported strong first-quarter financial results (ending June 30, 2024), its first report since the June 8th cyberattack that disrupted various company services.

Business operations have since fully resumed. The publishing and IP creation sectors anticipate a gradual recovery of shipping volumes in August, with a return to normal daily shipments projected by mid-August. Major affected web services are also nearing full restoration.

The video game sector showcased remarkable growth, achieving sales of 7,764 million yen—an impressive 80.2% surge compared to the previous year. Ordinary profit increased by a substantial 108.1%. This exceptional performance is largely attributed to the phenomenal success of Elden Ring and its Shadow of the Erdtree DLC, significantly boosting the gaming division's revenue.