Last year was a financially bleak one for Atlus, recording an operating loss of 104 million yen ($1.2 million). Thankfully, the small-time niche publisher made a significant rebound in 2010, a feat it is attributing largely to the release of PS3 exclusive sleeper-hit Demon’s Souls.

In its latest earnings report — unearthed by Gamasutra, parent company Index Holdings posted profits of 437 million yen ($5.39 million). Developed by From Software, Demon’s Souls was released in Japan last year. Later, in October of 2009, it was localized for a domestic release by Atlus. Critical reception and word-of-mouth drove this relatively unknown title to success.

Kudos to Atlus for picking up this gem. Here’s hoping a sequel is on the cards.

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