Elden Ring DLC Helps FromSoftware Bounce Back After Major Cyberattack

Elden Ring's success, including its Shadow of the Erdtree DLC, significantly bolstered Kadokawa's gaming division performance, proving a powerful counterbalance to a recent cyberattack. This article delves into the financial impact of the security breach and the positive contribution of FromSoftware's flagship title.

Elden Ring and its DLC Power Kadokawa's Gaming Sector Growth

$13 Million Loss from Kadokawa Cyberattack

On June 27th, the Black Suits hacking group claimed responsibility for a significant data breach at Kadokawa, FromSoftware's parent company. The stolen data included sensitive business information and user details. Kadokawa confirmed on July 3rd that the breach compromised Dwango employee data, internal documents, and some information from affiliated companies.

Gamebiz reports that the breach cost Kadokawa approximately 2 billion yen (roughly $13 million), resulting in a 10.1% decline in net profit year-over-year. However, the company still reported strong first-quarter financial results (ending June 30, 2024), its first report since the June 8th cyberattack.

Full business operations have since been restored. While the publishing and IP creation sectors experienced temporary disruptions, a gradual recovery is underway, with a return to normal daily operations anticipated by mid-August. Affected web services are also nearing full restoration.

The video game sector showcased remarkable resilience, achieving sales of 7,764 million yen—a substantial 80.2% increase compared to the previous year—and a 108.1% rise in ordinary profit. This impressive growth is largely attributed to the phenomenal success of Elden Ring and its Shadow of the Erdtree expansion, which provided a critical boost to the gaming division's bottom line.