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Cyberattack On Kadokawa Delays Publication Of Titles & Reduces Manga Volume Production, Latest Report Reveals




Kadokawa is facing significant operational challenges in the aftermath of a cyberattack that has severely disrupted its systems.

On June 14, 2024, the company has provided a detailed update on the impact and ongoing recovery efforts.

The cyberattack occurred on June 8, targeting Kadokawa’s data center servers with ransomware. The attack badly affected the company’s publishing business and digital services.

In response, Kadokawa took immediate action by shutting down affected servers to prevent further damage and safeguard data.

This decision, however, resulted in widespread operational disruptions across the company’s various business units.

Publishing Business Impact:

According to the latest report from Kadokawa, their decision to shut down servers has caused major delays in the publication of new titles and a reduction in the production volumes of manga and other books.

The digital manufacturing plants and logistics systems, essential for timely production and distribution of new titles and reprints, have been severely disrupted.

This has resulted in decreased shipment quantities, impacting the availability of both new and existing titles in the market.

Moreover, the editing and production support systems for both print and e-books are down.

This has disrupted the workflow of editors and production teams, potentially affecting the release schedules of upcoming publications.

Impact on Digital Services and E-commerce:

The repercussions of the cyber attack extend beyond the publishing sector, impacting Kadokawa’s digital services and e-commerce operations.

All services within the Niconico family, including Niconico Douga, Niconico Live Broadcast, and Niconico Channel, are currently suspended.

Additionally, several online shops operated by the company are facing challenges in order processing and shipping.

The company’s accounting systems have also been disrupted, causing a temporary halt in settlement processes. This could lead to delays in payments to business partners.

Kadokawa also revealed that the incident will impact their performance for the fiscal year, though its extent is currently unknown.

The impact of this incident on our current fiscal year’s performance remains unclear at this time. We will promptly disclose any significant findings as they are identified.

Recovery Efforts and Timeline:

In response to the crisis, Kadokawa revealed that they have established a task force dedicated to managing the recovery efforts. The company is prioritizing the restoration of its accounting functions and the normalization of its manufacturing and logistics operations.

These recovery efforts will be implemented in stages, with the goal of fully restoring core systems by the end of June.

Moreover, it was also revealed that the recovery of Niconico services will take longer, as systems need to be reconstructed in a secure environment, a process expected to take more than a month.

We will continue to aim for the earliest possible recovery, working as a unified group to fully restore system and business activity normalization. We deeply apologize once again for the significant inconvenience and trouble caused to all stakeholders, including our customers,” they added.

Source: Kadokawa’s Latest Report

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