Elden Ring and DLC Boost Kadokawa’s Game Sector SalesKadokawa’s Security Breach Results in $13 Million in Losses
According to Gamebiz, Kadokawa Corporation suffered a data breach that cost the company approximately 2 billion yen, around $13 million, and caused a 10.1% decline in net profit compared to the previous year. Despite this, Kadokawa posted robust financial results for the first quarter of the fiscal year ending June 30, 2024. This marks Kadokawa's first financial report since the large-scale cyberattack on June 8, which disrupted several of the company’s services.
Fortunately, business operations have now been fully restored. 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.
The company's video game sector experienced substantial growth, with sales reaching 7,764 million yen—an 80.2% increase from the previous year—and operating profit up by 108.1%. This strong performance was primarily driven by Elden Ring and its Shadow of the Erdtree DLC, which provided a major boost to the gaming division.
