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 driver of growth for Kadokawa Corporation's gaming division, despite a recent cyberattack. This article delves into the financial impact of the security breach and the remarkable success of FromSoftware's flagship title.

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 attack compromised a substantial amount of data, including sensitive business information and user data. Kadokawa confirmed on July 3rd that the breach affected Dwango employee data, 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 still reported strong first-quarter financial results for the fiscal year ending June 30, 2024. This is the first financial report since the June 8th cyberattack, which temporarily disrupted various company services.

Full service restoration is now complete. While the publishing and IP creation sectors experienced some temporary setbacks, shipping volumes are projected to fully recover by mid-August. Major affected web services are also back online.

The video game sector showcased exceptional performance, with sales reaching 7,764 million yen—a remarkable 80.2% surge compared to the previous year. Ordinary profit increased by an impressive 108.1%. This outstanding growth is largely attributed to the phenomenal success of Elden Ring and its Shadow of the Erdtree DLC.