In 2023, FromSoftware experienced a 29% decrease in revenue compared to the previous year, as revealed by new financial reports from parent company Kadokawa. This decline is attributed to the massive popularity of Elden Ring, which sold over 25 million copies and received critical acclaim.
Despite the revenue drop, FromSoftware remains highly profitable with a 42.5% profit margin, underscoring the company’s financial health and success in the gaming industry.
Highlights
- FromSoftware”s 2023 revenue was down 29% from the previous year due to Elden Ring”s massive popularity.
- Elden Ring sold over 25 million copies and received critical acclaim.
- Despite the revenue decrease, FromSoftware is still profitable with an impressive 42.5% profit margin.
FromSoftware’s total revenue in 2023’s fiscal year was down by 29% when compared to the previous year, as indicated by new financial reports from its parent company, Kadowaka. However, FromSoftware is still fairly profitable, and the decrease is directly linked to Elden Ring’s huge popularity.
Elden Ring was released in 2022, and it was FromSoftware’s biggest hit ever. Elden Ring has sold over 25 million copies so far, and received very positive reviews from critics, with an average score of 95 on Open Critic. Kadowaka is a public Japanese company and is the parent company of Elden Ring’s maker, FromSoftware.
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Now, information from Kadowaka Corporation’s recent earnings reports regarding the fiscal year of 2023 (which ended in March 2024) has revealed that FromSoftware’s revenue has dipped 29% when compared to 2022, totaling $103.2 million in 2023. Despite this significant decrease in revenue, the company still had a healthy profit margin of 42.5%. Also, FromSoftware was responsible for over 60% of Kadowaka’s video game revenue last year.
FromSoftware”s Revenue Down 29% Due to How Successful Elden Ring Was
When explaining why the revenue dipped so much during the year, the documents explained that Elden Ring’s success in 2022 was the biggest culprit behind the sudden change. The game managed to sell over 12 million copies in two weeks, being a major reason for the high revenue. However, Kadowaka also noted that Armored Core 6: Fires of Rubicon overperformed the expectations of the company both domestically and overseas. Armored Core 6 sold over three million units globally, being one of the company’s biggest earners for 2023.Close
FromSoftware’s revenue will likely be greatly increased once more in 2024’s fiscal year, which started in April 2024 and will continue until March 2025. Elden Ring’s DLC was a massive hit, selling over 5 million copies in only three days, something not common for expansions. Elden Ring: Shadow of the Erdtree was widely considered to be one of the best video game expansions of all time by critics and players alike, only being criticized due to its very high difficulty levels, and managed to obtain a score of 94 on Open Critic, just a little bit below the base game.
Due to Shadow of the Erdtree’s release, the base Elden Ring game also saw a huge sales spike, which is likely to represent more revenue from FromSoftware and Kadowaka. According to recent reports, Elden Ring was one of the highest-selling games in July in the United Kingdom, increasing its sales by 467% during the month.
From Software
Based in Japan, FromSoftware is a development company best known for the Souls series and Armored Core franchise. Other popular games from From Software include Elden Ring, Sekiro, Bloodborne, and the King”s Field series.
Date Founded
November 1, 1986
Headquarters
Tokyo, Japan
CEO
Hidetaka Miyazaki
Parent Company
Kadokawa
Known For
dark souls
, Armored Core
