"Overly focused on Narou and isekai works" — KADOKAWA sees sharp profit decline in publishing, rushes structural reforms

KADOKAWA reported a sharp drop in FY2026 operating profit, with its publishing unit slipping from profit to loss.

The company blamed overreliance on established narou/isekai hits, rising costs, and weaker performance from new titles.

It has launched a cross-functional steering committee and reorganized publishing operations to rebuild competitiveness.

A new medium-term plan puts restructuring first, with broader IP and content growth targeted afterward.