FromSoftware, the studio behind hits like Elden Ring, saw a 29% drop in revenue for the 2023 fiscal year, according to recent financial reports from its parent company, Kadowaka. Despite this dip, the company remains profitable, with the decline directly tied to the massive success of Elden Ring.

Released in 2022, Elden Ring was a game-changer for FromSoftware,  selling over 25 million copies and earning rave reviews with an impressive average score of 95 on Open Critic. Kadowaka, a Japanese public company, oversees FromSoftware’s operations and has reported that the studio contributed to more than 60% of its video game revenue last year.

The 2023 financials reveal that FromSoftware’s revenue dropped to $103.2 million, a significant decline from the previous year. However, the company maintained a strong profit margin of 42.5%. The drop is largely attributed to Elden Ring’s overwhelming success in 2022, which pushed revenue to unusually high levels. Elden Ring sold over 12 million copies within just two weeks of its release, setting a high bar for revenue that was hard to match in the following year.

Despite the revenue dip, there were bright spots. Armored Core 6: Fires of Rubicon exceeded expectations both in Japan and internationally,         selling over three million units and becoming one of the top earners for 2023.

Looking ahead, FromSoftware’s revenue is expected to rebound in the 2024 fiscal year, which started in April 2024 and runs through March 2025.        The recent release of Elden Ring’s DLC, Shadow of the Erdtree, has been a major hit, selling over 5 million copies in just three days. Critics and players have praised the expansion, which scored 94 on Open Critic, though it did face some criticism for its high difficulty.