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. Let's delve into the details of the breach and Kadokawa's financial report.
Elden Ring and its DLC Power Kadokawa's Gaming Sector
$13 Million in Losses Due to Kadokawa Cyberattack
On June 27th, the hacking group Black Suits claimed responsibility for a data breach targeting Kadokawa. The stolen data included business strategies and user information. Kadokawa confirmed on July 3rd that the breach compromised Dwango employee data, internal documents, and some information from affiliated companies.
According to Gamebiz, the cyberattack cost Kadokawa approximately 2 billion yen (around $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 attack.
Normal operations have since resumed. The publishing and IP sectors anticipate a gradual recovery in August, with full service restoration expected by mid-August. Major affected web services are also returning to normal functionality.
The video game sector showed remarkable growth, with sales reaching 7,764 million yen—an impressive 80.2% increase compared to the previous year. Ordinary profit surged by 108.1%. This impressive performance is largely attributed to the phenomenal success of Elden Ring and its Shadow of the Erdtree expansion.
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