KADOKAWA, a prominent player in the entertainment industry, unveiled its financial performance for the fiscal year ending March 2024 on May 9th, reporting a stable consolidated sales increase of 1.0% to 258,109 million yen. However, the company faced significant declines in its gaming division, with operating income dropping by 28.8% to 18,454 million yen, ordinary income by 24.1% to 20,204 million yen, and net income by 10.2% to 11,384 million yen.
The downturn in the gaming sector, which saw a 16.5% decline in sales to 25.351 billion yen, comes off the back of last year’s hit “ELDEN RING.” The absence of such blockbuster releases this year starkly impacted overall earnings. Operating income for games plummeted by 44.1% to 7.95 billion yen.
Conversely, KADOKAWA’s animation and live-action video businesses flourished, with sales rising by 6.4% to 46.06 billion yen and operating income up by 10.9% to 4.574 billion yen. This sector, buoyed by successful titles such as “Oshi no Ko” and the live-action film “My Happy Marriage,” now represents nearly 30% of total sales, with significant contributions from international markets.
KADOKAWA’s strategic focus on expanding its animation portfolio to 57 new releases this fiscal year—comprising 49 series and 8 feature films—underscores its commitment to enhancing its market presence. This approach, coupled with efforts to extend the commercial lifespan of its hits internationally, continues to bear fruit.
Looking ahead, the company anticipates a slight downturn in animation and live-action video sales to 45.2 billion yen for FY ending March 2025, with expected declines in operating profits. Nevertheless, projections remain positive for the animation segment alone, supported by a promising lineup of new releases and expansions into large-scale and live-action projects, setting the stage for potential growth in the broader video business.
