FromSoftware Recovers Post-Attack with Elden Ring DLC

Elden Ring and its Shadow of the Erdtree expansion pack are proving to be a significant catalyst for the growth of Kadokawa Corporation's gaming division. This follows a substantial cyberattack that impacted the company. Let's delve into the details of the security breach and Kadokawa's recent financial report.

Elden Ring and its DLC Power Kadokawa's Gaming Sector

Kadokawa's Cyberattack Results in $13 Million in Losses

On June 27th, the hacking group Black Suits claimed responsibility for a cyberattack targeting Kadokawa, FromSoftware's parent company. The group stated they had exfiltrated a considerable amount of data, encompassing business strategies and user information. Kadokawa confirmed on July 3rd that the breach compromised personal data of all Dwango employees, internal documentation, and some data pertaining to employees from affiliated companies.

According to Gamebiz, the security breach cost Kadokawa approximately 2 billion yen (roughly $13 million), resulting in a 10.1% decline in net profit compared to the previous year. Despite this setback, Kadokawa reported robust financial results for the first quarter of the fiscal year ending June 30th, 2024. This is Kadokawa's first financial report since the extensive cyberattack on June 8th, which disrupted numerous company services.

Thankfully, all business operations have been fully restored. In the publishing and IP creation sectors, the recovery of shipping volumes for affected publications is underway, with a projected return to normal daily shipments by mid-August. Several major web services affected by the attack are also back online.

The video game sector demonstrated remarkable growth, achieving sales of 7,764 million yen—an impressive 80.2% surge compared to the previous year—and an ordinary profit increase of 108.1%. This exceptional performance is largely attributed to the phenomenal success of Elden Ring and its Shadow of the Erdtree DLC, which significantly boosted the gaming division's revenue.