Elden Ring's Success Can't Save Kadokawa from 60% Profit Drop

Kadokawa, the parent company of FromSoftware, is bracing for a significant 60% decline in gaming profits for FY2025, attributing this to the extraordinary success of Elden Ring and its DLC Shadow of the Erdtree from the previous year. To combat this anticipated drop, Kadokawa is banking on the launch of the Elden Ring spin-off titled Nightreign, as well as the upcoming Tarnished Edition for the Switch 2, which promises to be the first appearance of the acclaimed franchise on a Nintendo console. Nightreign is set for release on May 30, 2025, and features online multiplayer co-operative gameplay along with roguelite elements where players tackle Nightlord bosses together. Despite some excitement surrounding these projects, the overall anticipation seems subdued compared to the original game. Kadokawa remains optimistic, hoping that these new titles will rejuvenate interest and bolster their financial outlook.

The Elden Ring Tarnished Edition for Switch 2 will introduce two new character classes and fresh appearances for the Torrent mount, as well as other enhancements that will also be made available to existing platforms through an update.

Elden Ring, released in early 2022, received widespread acclaim for its expansive open world, engaging lore, and intricate gameplay mechanics. It quickly became a phenomenon, selling over 30 million copies and winning several Game of the Year awards. With upcoming expansions and spin-offs, FromSoftware aims to solidify its legacy and attract a broader audience, particularly with the Nintendo Switch 2 entry, which could bring the franchise to a whole new demographic of gamers.