KADOKAWA Q1 Revenue Rises but Profit Falls as Game Segment Slips
The quarter shows KADOKAWA's game segment resetting after the ELDEN RING NIGHTREIGN launch year, with the publishing side carrying growth while the company absorbs production cost pressure and early retirement special losses.
Reporting from 1 source: Denfaminicogamer.
KADOKAWA released Q1 FY2027 results on August 13. Net sales rose 5.3% year-on-year while operating profit fell 45.5%. The game segment declined against last year, when ELDEN RING NIGHTREIGN contributed significantly. Publishing and IP creation grew on titles like Super Kaguya-hime!. FromSoftware has ELDEN RING Tarnished Edition and The Duskbloods scheduled from Q2 onward.
KADOKAWA's first quarter of the fiscal year ending March 2027 landed with a split result: net sales up 5.3% year-on-year, operating profit down 45.5%. The game segment bore the comparison, shrinking against the same period last year when the full version of ELDEN RING NIGHTREIGN drove a significant contribution, though repeat sales of the original ELDEN RING are holding steady.
The publishing and IP creation segment grew in both revenue and profit, helped by business structural reforms and hit titles such as Super Kaguya-hime!. FromSoftware's slate from the second quarter onward includes ELDEN RING Tarnished Edition and The Duskbloods, while Spike Chunsoft has multiple titles planned including Super Danganronpa 2×2. Net profit declined sharply on special losses from the early retirement program, and the anime segment saw profit fall as production costs keep rising despite revenue gains from Re:Zero and Classroom of the Elite.
Synthesized by Yomimono from the 1 cited source below, including Japanese-language reporting where cited, then editorially reviewed before publishing.