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. This follows a major cyberattack that impacted the company. Read on for details on the security breach and Kadokawa'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 hacking group Black Suits claimed responsibility for a cyberattack targeting Kadokawa, FromSoftware's parent company. The hackers reportedly stole substantial data, including 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 company employees.

According to Gamebiz, the security breach cost Kadokawa approximately 2 billion yen (roughly $13 million), leading to a 10.1% decline in net profit compared to the previous 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.

Full recovery of business operations is underway. The publishing and IP creation sectors anticipate a gradual recovery of shipping volumes in August, aiming for a return to normal daily shipments by mid-August. Major affected web services are also nearing full restoration.

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