Elden Ring DLC Helps FromSoftware Bounce Back After Major Cyberattack

Elden Ring and its Shadow of the Erdtree expansion pack are proving to be a significant catalyst for the success of Kadokawa Corporation's gaming division. This article explores the impact of a recent cyberattack and the company's subsequent financial report.

Elden Ring and DLC Power Kadokawa's Gaming Sector Growth

Kadokawa's Cyberattack Results in $13 Million in Losses

On June 27th, the hacking group Black Suits claimed responsibility for a data breach targeting Kadokawa, FromSoftware's parent company. The stolen data reportedly 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 employees of 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 still reported robust financial results for the first quarter of fiscal year 2024 (ending June 30th). This is Kadokawa's first financial report since the June 8th cyberattack, which temporarily disrupted various company services.

Normal operations have since been fully restored. The publishing and IP creation sectors anticipate a gradual recovery of shipping volumes in August, aiming for a complete return to normal daily shipments by mid-August. Major affected web services are also back online.

The video game sector demonstrated remarkable growth, with sales reaching 7,764 million yen—an impressive 80.2% surge compared to the previous year—and operating 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, significantly boosting the gaming division's revenue.