Elden Ring

Kadokawa Financial Results: The 3rd Quarter Ended December 31, 2021

Kadokawa’s financial performance for the third quarter of the fiscal year ending March 31, 2022, reflects a period of strategic transition characterized by a 3.2% increase in net sales.

• Kadokawa's publishing segment achieved high growth, with e-book sales increasing by 17.4% and overseas sales rising by 73% compared to the previous fiscal year.
• The animation business saw a 10.2% increase in net sales driven by streaming and rights licensing, though operating profit declined 39.6% due to increased production depreciation costs.
• The gaming segment experienced a significant downturn, with net sales falling 38.2% and operating profit dropping 86.2% due to a reactionary decline from the previous year's COVID-driven demand and revised development schedules.

Plus: Witness the Elden Ring-ness!

This industry analysis examines the commercial performance and market trends of PC and console gaming for late February 2022.

• Elden Ring achieved a peak of 764,000 concurrent users on Steam at launch, with long-term sales projections estimated between 10 and 20 million units.
• Despite high commercial demand, Elden Ring’s PC port holds a 59% positive review rating on Steam due to technical issues involving DirectX 12 and frame-rate stuttering.
• Apple Arcade’s strategic pivot toward 'plus' titles—ports of existing mobile hits like Solitaire and Mahjong—has increased the service's broad appeal but lowered average usage-based payouts for developers of exclusive games.

Plus Analysis: Teardown's 1.0, Dune: Spice Wars' Debut & More

This analysis examines the performance and market trends of PC, console, and VR games for late April 2022.

• The 1.0 release of Teardown drove the destruction simulator toward an estimated two million units sold while maintaining a 97% positive user rating on Steam.
• LEGO Star Wars: The Skywalker Saga and Elden Ring remain the dominant top-charting titles across PlayStation, Xbox, and Switch platforms.
• Green Hell VR achieved strong market momentum on the Meta Quest platform, with estimated sales between 100,000 and 150,000 units shortly after its launch.

Plus: Q1 on Steam - Let's Witness the Hotness

This analysis provides a comprehensive outlook on the Steam and console gaming markets for the first quarter of 2022.

• Steam's Q1 2022 market was defined by high-profile releases including Elden Ring, God of War, and Monster Hunter Rise, alongside the successful Western launch of the MMO Lost Ark.
• The tactical shooter Ready Or Not emerged as a significant sleeper hit in late 2021, achieving a 94% positive review rating despite low pre-launch visibility.
• Indie developers face a 'Game Pass or bust' environment on Xbox, where paid download charts are dominated by viral hits like Among Us rather than traditional indie titles.

News Mash-Up: Week 22 & 23 (June 2021)

This industry update provides a comprehensive overview of major developments within the global gaming sector during the first two weeks of June 2021.

• Microsoft is expanding its Xbox cloud gaming strategy by developing a streaming dongle and smart TV app to enable GamePass access via browsers, mirroring the Stadia model.
• Take-Two Interactive acquired mobile developer Nordeus, creator of Top Eleven, for $378 million to expand its mobile gaming footprint.
• GameStop reported a 25% year-over-year revenue increase to $1.3 billion for Q1 2021, though the company still posted a net loss of $41 million.

Plus: Why Total War: Warhammer III Got Review Bombed

This analysis examines the commercial performance and market reception of major PC and console titles during early 2022, with a specific focus on the launch of Total War: Warhammer III.

• Total War: Warhammer III achieved a successful commercial launch with over 160,000 peak concurrent users on Steam, despite receiving a 'Mixed' review rating.
• The 'Mixed' rating for Total War: Warhammer III was primarily driven by a coordinated review-bombing campaign from the Chinese gaming community, stemming from a poorly executed influencer marketing strategy.
• Distributing early access keys to influencers unfamiliar with a franchise can alienate core fan bases in sensitive international markets, leading to significant reputational damage.

Bandai Namco Group Fiscal Year Ended March 2022 Information Meeting

The Bandai Namco Group’s fiscal year 2022 information meeting outlines the company’s financial performance for the period ending March 31, 2022, and establishes its strategic roadmap for the future.

• Bandai Namco achieved strong fiscal 2022 results with 889.2 billion yen in net sales and 125.4 billion yen in operating profit, both exceeding initial forecasts.
• The Digital segment was bolstered by the release of Elden Ring, which significantly outperformed expectations by shipping 13.4 million units against an initial forecast of 4 million.
• The company is transitioning to an 'IP Metaverse' strategy to integrate digital, physical, and virtual experiences for deeper global fan engagement.

Kadokawa Financial Results: Fiscal Year Ended March 31, 2021

Kadokawa achieved record-high net sales and a 68.5% increase in operating profit for the fiscal year ending March 31, 2021.

Plus: Total War: Warhammer III and Elden Ring Dominate Upcoming Steam Debuts

Market analysis of the Steam platform for early 2022 indicates that Elden Ring and Total War: Warhammer III are the primary drivers of consumer anticipation.

• Elden Ring leads all upcoming Steam titles in wishlists, while Total War: Warhammer III is projected to have secured between 1 and 1.5 million pre-launch wishlists.
• Dying Light 2 achieved 3 million total players in its first week, with an estimated 1 to 1.5 million of those users on the Steam platform.
• Sifu sold 500,000 units across the Epic Games Store and PlayStation consoles within its first five days of release.

Jedi Fallen Order Not So Bad | Games ReCAP Episode 006

Star Wars Jedi: Fallen Order suffers from a fundamental disconnect between its source material and its execution.

• The gaming industry is shifting away from traditional annual sequel models, such as those seen in Call of Duty, toward persistent games-as-a-service models that prioritize long-term evolution and player mastery.
• Star Wars Jedi: Fallen Order is criticized for a disconnect between its source material and gameplay, specifically failing to capture the tension of lightsaber combat through its reliance on arcade-style mechanics.
• High-quality single-player titles like Elden Ring and God of War remain industry pillars, demonstrating that strong brand reputation is a primary driver of commercial success.

Kadokawa Integrated Report 2022

Kadokawa operates as a comprehensive media enterprise centered on a "Global Media Mix" strategy, which seeks to maximize the value of intellectual property by deploying content across publishing, animation, gaming, and digital platforms.

• Kadokawa achieved consolidated net sales of 221.2 billion yen for the fiscal year ending March 2022, with operating profit increasing by 35.9% year-on-year.
• The gaming segment was a primary growth driver, recording an 89.5% increase in operating profit during the 2022 fiscal year, bolstered by the success of Elden Ring.
• The company has set a mid-term growth target of 250 billion yen in net sales by 2025.

Kadokawa Integrated Report 2023

Kadokawa operates as a diversified entertainment conglomerate centered on a media mix strategy that maximizes intellectual property value across publishing, video, games, web services, and education.

• Kadokawa achieved consolidated net sales of 255.4 billion yen and an operating profit of 25.9 billion yen for the fiscal year ending March 2023.
• The global success of the game title Elden Ring was a primary growth driver, helping to increase overseas net sales to 20.5% of total revenue.
• The company delivered a total shareholder return of 528.0% over the reporting period, significantly outperforming the TOPIX index.