FromSoftware's parent company, Kadokawa, saw its gaming sector thrive thanks to the success of Elden Ring and its Shadow of the Erdtree DLC. This positive performance helped offset losses from a significant cyberattack. Read on for details on the security breach and Kadokawa's financial report.

Elden Ring and DLC Power Kadokawa's Gaming Sector Growth

$13 Million Loss from Kadokawa Cyberattack

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

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

Business operations have fully recovered. While publishing and IP creation sectors experienced temporary disruptions, recovery is underway, with normal operations expected by mid-August. Affected web services are also returning to normal.

The gaming sector demonstrated exceptional growth, achieving sales of ¥7,764 million—an impressive 80.2% increase compared to the previous year. Ordinary profit soared by 108.1%, largely attributed to the phenomenal success of Elden Ring and its Shadow of the Erdtree expansion.