Kadokawa Corporation has released its second-quarter financial results for the fiscal year ending March 2025. The presentation included details such as the group’s 26 new games in development.
Kadokawa Corporation has Elden Ring developer FromSoftware and Mystery Dungeon developer Spike Chunsoft as part of its subsidiaries. The corporation expanded its game development pipeline with the purchase of Acquire, the developer behind Tenchu series in 2023.
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Between April and September 2024, Kadokawa Corporation’s net sales increased by 9.8% while its operating profit jumped by 23.5%. The corporation’s gaming division contributed tremendously to the positive numbers. However, the company lost 2.3 billion yen (approx. $14.9 million) to cyberattack on servers in its data center that was discovered in June this year.
“The Gaming Segment includes the planning, development, sales, and licensing of game software and online games,” the corporation said in its earnings report.
“Results in this segment were driven powerfully by strong domestic and overseas sales of downloadable content ELDEN RING SHADOW OF THE ERDTREE released by FromSoftware, Inc. and an increase in repeat sales of ELDEN RING.”
Kadokawa Corporation has acquired Arclight Inc. to expand its analog game footprint
On page 13 of its earnings report, Kadokawa Corporation said that it had acquired Arclight Inc, a company whose activities include planning, manufacturing, development, and sale of analog games. Explaining the reason for the acquisition, Kadokawa Corporation said it would help them tap into the growing genre.
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“In recent years, so-called “analog” games that do not require a power source, such as trading card games (TCG) and board games (BDG), have grown in popular both domestically and worldwide, and growth of the market has continued,” the Corporation explained.
“The Company has previously worked on the analog game business as content to nature characters and stories to achieve a media mix, and by welcoming Arclight, Inc. the Group, the Company aims to enhance the genres that make up the media mix for the popular IPs it maintains, specifically by accelerating the commercialization of analog games, while also further expanding the number of IPs it creates by discovering new game developers and authors through one of Japan’s largest analog game events organized and operated by Arclight.”
Although Arclight Inc. was acquired on June 30, 2024, more details of the transaction have now been revealed. The acquisition was done through shares and cost Kadokawa 2 billion yen (approx. $13 million).
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