KADOKAWA predicts a significant decline in operating profit for its video game business in the FY ending March 2026 (down 60% to 3.8 billion yen)

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Article is machine translated since the source is gamebiz.jp:

KADOKAWA is forecasting a significant decline in profits for its video game business in the fiscal year ending March 2026, with sales down 22.6% year on year to 26 billion yen and operating profit down 60.2% year on year to 3.8 billion yen. The company expects this to be a backlash from the previous fiscal year, when the company achieved a large increase in profits, driven by the main game "ELDEN RING" and the downloadable content "ELDEN RING SHADOW OF THE ERDTREE."

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This fiscal year, FromSoftware will release "ELDEN RING NIGHTREIGN" (May 30th), a spin-off title of "ELDEN RING", and "ELDEN RING Tarnished Edition" (to be released in 2025) for the Nintendo Switch 2. The company plans to achieve results that exceed its plan by increasing new and repeat sales.

Currently, the group is developing a total of 21 titles, mainly for consoles, through FromSoftware, Spike Chunsoft, Gotcha Gotcha Games, and Acquire, as well as a total of 5 titles through Kadokawa itself and VIC Games.

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"From Software is carrying us, and they don't have a "heavy hitter" in the pipeline for the foreseeable future".
 
Makes sense, it's gonna be hard to reproduce the ginormous success of ER or the lightning in the bottle success of DBZ
 
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