FromSoftware Recovers with Elden Ring DLC Post-Cyberattack

Elden Ring and DLC are Driving Kadokawa’s Sales in the Game Sector

Kadokawa’s Security Breach Cost $13 Million in Losses

On June 27, the notorious hacking group Black Suits claimed responsibility for a devastating cyberattack on FromSoftware’s parent company, Kadokawa. They boasted about stealing a vast amount of sensitive data, including business plans and user-related information. Kadokawa confirmed on July 3 that the breach compromised the personal information of all Dwango employees, internal documents, and some data on employees from affiliated companies.

According to Gamebiz, the security breach inflicted a staggering loss of approximately 2 billion yen—around $13 million—on Kadokawa Corporation. This incident also led to a 10.1% drop in net profit compared to the previous year. Despite these setbacks, Kadokawa showcased robust financial results for the first quarter of the fiscal year ending June 30, 2024. This marks the company's first financial report since the large-scale cyberattack on June 8, which temporarily disrupted several of its services.

Fortunately, Kadokawa has fully restored its business activities. In the publishing and IP creation sectors, shipping volumes for affected publications are expected to recover gradually in August, with daily shipments anticipated to return to normal by mid-August. Several major web services that were impacted are also set to resume normal operations soon.

The company's video game sector has experienced phenomenal growth, with sales soaring to 7,764 million yen—an impressive 80.2% increase from the previous year—and ordinary profit surging by 108.1%. This stellar performance can be largely attributed to the immense success of Elden Ring and its Shadow of the Erdtree DLC, which have provided a significant boost to Kadokawa’s gaming division.