Kadokawa has unveiled its financial results for the 2023-24 fiscal year, indicating a decline in both sales and profits within the gaming sector.
Despite being a diversified conglomerate involved in various industries such as animation, film, education, and publication, gaming represents just one facet of its operations.
In the gaming domain specifically, Kadokawa’s operating profit has decreased by 44.1% compared to the previous year, with the company generating 7.95 billion yen ($51.04M USD) in operating profit this year, down from 14.22 billion yen ($91.39M USD) the previous year.
In their Animation and Film ventures, Kadokawa has seen a year-over-year growth of 6.4% in net sales and a staggering 110.9% increase in operating profits.
Kadokawa notes a decline in gaming operating profit for the fiscal year, attributing it to reduced sales. However, one standout performer emerged amidst this trend. Armored Core 6: Fires of Rubicon, developed by FromSoftware, surpassed expectations, particularly in the domestic market of Japan.
Interestingly, this success contrasts with Bandai Namco’s report last year, indicating that Armored Core 6 struggled to match Elden Ring’s sales. However, such a comparison may not be entirely fair, given Elden Ring’s exceptional performance having sold over 13 million copies within a month worldwide.
Furthermore, Kadokawa highlights Spike Chunsoft’s success, fueled by the releases of Master Detective Archives: Rain Code, which coincidentally is about to get a re-release on other platforms including PC. And Shiren the Wanderer 6: The Mystery Dungeon of Serpentcoil Island, which contributed to increased sales throughout the year.
Additionally, according to another financial document from Kadokawa, employees of FromSoftware are being granted stock options that will provide rewards over the course of the next four years.
Kadokawa anticipates promising outcomes in the forthcoming seasons, buoyed by highly anticipated anime adaptations like the third season of Konosuba and Re:Zero, as well as the second season of Oshi no Ko. These releases are expected to contribute to a significant boost in profits for the company.
Konosuba 3 is presently airing, and in the upcoming summer season, fans eagerly anticipate the second season of Oshi no Ko, with the third season of Re:Zero scheduled for October.
Kadokawa has high expectations for several other anime as well, including Dungeon Meshi, which has proven to be quite the success alongside Unnamed Memory, Overlord, and Date A Live 5, among others.
In sales charts, Oshi no Ko claims the top spot in the animation segment, followed by MY HAPPY MARRIAGE, The Eminence in Shadow, and Re:Zero rounding out the top four. Interestingly, Sword Art Online remains a significant revenue generator for Kadokawa, despite the fact that the novel series has effectively been on hiatus for almost two years, with the 28th volume of the main light novel set to release on June 7th.
Mushoku Tensei: Jobless Reincarnation claims the top spot for literature sales, followed by Pan Dorobou and Sword Art Online. However, the most notable highlight is Oshi no Ko’s extraordinary success solely attributed to its anime adaptation.
Kadokawa’s future appears brighter than ever, driven significantly by a substantial surge in animated profits, not to mention their endeavors in film, light novels, magazines, games, and more. I eagerly anticipate their next financial results following the conclusion of KonoSuba 3 and Re:Zero 3.
You can view the rest of Kadokawa’s earnings results yourself here.
