Elden Ring DLC Helps FromSoftware Bounce Back After Major Cyberattack

Elden Ring and its Shadow of the Erdtree DLC are proving to be a powerful force behind the success of FromSoftware's parent company, Kadokawa, in the gaming sector. Let's delve into the details of a recent cyberattack and Kadokawa's impressive financial report.

Elden Ring and its DLC Drive Kadokawa's Gaming Sector Sales

Kadokawa's Cyberattack Results in $13 Million in Losses

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

According to Gamebiz, this security breach cost Kadokawa approximately 2 billion yen (roughly $13 million), resulting in a 10.1% decrease in net profit compared to the previous year. Despite this setback, Kadokawa reported strong first-quarter financial results for the fiscal year ending June 30, 2024. This is particularly noteworthy, considering it's their first report since the large-scale cyberattack on June 8th, which disrupted various company services.

Thankfully, Kadokawa has fully restored its business operations. While the publishing and IP creation sectors experienced temporary disruptions, with shipping volumes gradually recovering in August and expected to return to normal by mid-August, major impacted web services have also resumed normal operations.

The company's video game sector, however, saw remarkable growth. Sales reached 7,764 million yen—a significant 80.2% increase year-over-year—with ordinary profit soaring by 108.1%. This exceptional performance is largely attributed to the phenomenal success of Elden Ring and its Shadow of the Erdtree DLC, providing a substantial boost to the gaming division's bottom line.