Kadokawa Group recently announced its financial results for the first quarter of fiscal year 2027 (ended June 30, 2026). Due to the high baseline effect from the release of Elden Ring: Shadow of the Erdtree in the same period last year, the company's gaming business saw a significant decline this quarter—net sales fell 37.4% year-on-year to 5.42 billion yen, and operating profit dropped sharply by 58.8% to 1.39 billion yen.
Despite a weak start, Kadokawa has maintained its full-year performance forecast. The company expects the gaming business to generate 31.2 billion yen in revenue and 4.5 billion yen in operating profit for the entire fiscal year 2027. This represents a 4.8% increase in revenue compared to the previous fiscal year, but operating profit is projected to decline by 40.3%. Financial reports indicate that repeat sales and royalty income accounted for a larger share of game revenue this quarter, while contributions from new console and PC games were relatively small.
Kadokawa is pinning its hopes for recovery on two major upcoming titles from its subsidiary FromSoftware: Elden Ring Nightreign Edition, scheduled for release on August 28, 2026, and FromSoftware's new IP, Bloodborne: The Old Hunters, also planned for launch within 2026. Kadokawa stated that these titles are expected to further expand FromSoftware's user base globally, although specific sales forecasts have not yet been announced.
Additionally, Kadokawa's Spike Chunsoft is actively preparing, with multiple projects currently in development. Among them, Danganronpa 2x2 is scheduled for release in early 2027, and several new titles based on anime IPs are in the planning stages, including a game themed around KonoSuba: God's Blessing on This Wonderful World!