FromSoftware Revenue is Way Down, But There’s No Need to Worry

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FromSoftware Revenue is Way Down, But There's No Need to Worry

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.

As a gamer with countless hours lost in the labyrinthine worlds of FromSoftware games, this news has left me both surprised and delighted. While it’s disheartening to see a decrease in revenue for a company that consistently delivers masterpieces like Elden Ring, I can’t help but feel a strange sense of satisfaction knowing that their success has led to such a substantial drop.

The financial reports released by FromSoftware’s parent company, Kadowaka, show a 29% drop in total revenue for the 2023 fiscal year compared to the previous one. Despite this decline, it is important to note that FromSoftware remains financially sound. Interestingly, this decrease can be attributed to the extraordinary success of Elden Ring.

In 2022, Elden Ring was launched, marking FromSoftware’s most successful game to date. As of now, it has sold more than 25 million units worldwide and garnered exceptionally favorable reviews from critics, boasting an average rating of 95 on Open Critic. Notably, Kadowaka, a public Japanese conglomerate, owns FromSoftware, the developer behind Elden Ring.

As a longtime gamer and avid fan of FromSoftware, I have to say that their latest financial report has left me feeling a bit concerned. Having played and enjoyed many of their games over the years, I was shocked to see that their revenue dropped by a significant 29% compared to the previous year. This drop in revenue, totaling $103.2 million in 2023, is quite substantial and raises questions about the company’s current state.

FromSoftware’s Revenue Down 29% Due to How Successful Elden Ring Was

During the year, a significant decrease in revenue was attributed to the extraordinary success of “Elden Ring” in 2022. This game surpassed expectations by selling more than 12 million copies within just two weeks, making it a major contributor to the high revenue. It’s also important to mention that “Armored Core 6: Fires of Rubicon” outperformed the company’s predictions, both in the domestic and international markets. The game managed to sell over three million units worldwide, significantly boosting the company’s earnings for 2023.

It’s anticipated that FromSoftware’s income will significantly grow during their fiscal year spanning from April 2024 to March 2025, primarily due to the extraordinary success of Elden Ring’s DLC. This expansion sold an impressive 5 million copies in just its first three days on sale, which is quite unusual for expansions. Critics and players alike have widely praised Elden Ring: Shadow of the Erdtree, though some found its high difficulty levels challenging. Despite this, it received a commendable score of 94 on Open Critic, only slightly below the base game’s rating.

Thanks to the launch of “Shadow of the Erdtree”, there was a significant surge in sales for the original game “Elden Ring”. This boost in sales is expected to bring in more income for FromSoftware and Kadowaka. As per the latest data, “Elden Ring” was among the top-selling games in the United Kingdom last month, with its sales jumping by an impressive 467% during this period.

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2024-08-01 00:34