Elden Ring and DLC are Driving Kadokawa’s Sales in the Game SectorKadokawa’s Security Breach Cost $13 Million in Losses

According to Gamebiz, Kadokawa Corporation suffered a security breach that cost the company approximately 2 billion yen around $13 million, and caused a 10.1% drop in net profit compared to the previous year. Despite this, Kadokawa posted strong 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 activities 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 significant growth, with sales reaching 7,764 million yen—an 80.2% increase from the previous year—and ordinary profit up by 108.1%. This strong performance was primarily fueled by Elden Ring and its Shadow of the Erdtree DLC, which provided a major boost to the gaming division.