Elden Ring's success, including its Shadow of the Erdtree DLC, significantly bolstered Kadokawa's gaming division performance, acting as a key driver of growth. This report details the impact of a recent cyberattack and the company's financial recovery.
Elden Ring and its DLC Power Kadokawa's Gaming Sector Growth
$13 Million Loss from Kadokawa Cyberattack
On June 27th, the Black Suits hacking group claimed responsibility for a cyberattack targeting Kadokawa, FromSoftware's parent company. 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 yen (roughly $13 million), resulting in a 10.1% decline in net profit year-over-year. However, Kadokawa still reported robust first-quarter financial results (ending June 30, 2024), its first report since the June 8th cyberattack.
Full operational recovery is underway. Publishing and IP creation sectors anticipate a gradual recovery of shipping volumes in August, aiming for normal daily operations by mid-August. Major affected web services are also returning to normal functionality.
The video game sector showcased remarkable growth, achieving sales of 7,764 million yen—an impressive 80.2% surge compared to the previous year—with ordinary profit increasing by 108.1%. This exceptional performance is largely attributed to the phenomenal success of Elden Ring and its Shadow of the Erdtree DLC.
