FromSoftware’s parent company reports major growth despite serious losses from cyberattack, with Elden Ring DLC “powerfully driving” its whole game sector 

Kadokawa Corporation, the parent company of Elden Ring developer FromSoftware, published their consolidated financial results for the first quarter of the fiscal year (April 1 to June 30, 2024). This is their first financial report following the large-scale cyberattack from June 8 that rendered some of the company’s services unusable and led to massive internal data leaks.  

As reported by GameBiz, the aftermath of the security breach cost Kadokawa 2 billion yen (about $13 million) in extraordinary losses and a 10.1% decrease in net profit compared to last year. Despite this, the company saw a big increase in net sales (particularly in their video game sector) and an 84.6% growth in ordinary profit compared to the previous fiscal year.  

Kadokawa’s game sector saw 7,764 million yen in sales, which is an 80.2% year-on-year increase, and ordinary profit grew by 108.1%. The report highlights the contributions of FromSoftware’s Elden Ring and its Shadow of the Erdtree DLC, which both performed strongly, “powerfully driving” the whole business sector. It might be worth noting that Shadow of the Erdtree launched on June 21, meaning that this financial report accounts for only 10 days of sales.  

Similarly, Elden Ring’s publisher Bandai Namco recently reported their highest ever quarterly sales, which is also attributed in part to Shadow of the Erdtree. 

As an aside, Kadokawa Corporation has also released a ranking of their best-selling IP’s, which was topped by Delicious in Dungeon.