Elden Ring DLC: FromSoftware's Post-Cyberattack Recovery

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

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

Kadokawa's Cyberattack Results in $13 Million in Losses

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

According to Gamebiz, the security 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 for the fiscal year ending June 30, 2024, its first report since the June 8th cyberattack.

Normal business operations have been fully restored. The publishing and IP creation sectors anticipate a gradual recovery of shipping volumes in August, with a projected return to normal daily shipments by mid-August. Major affected web services are also resuming normal operations.

The video game sector demonstrated exceptional growth, with sales reaching 7,764 million yen—a remarkable 80.2% increase compared to the previous year—and ordinary profit soaring by 108.1%. This impressive 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.