Despite sluggish turnover, NCsoft increases its net profit. To better recover its accounts, the Korean giant is counting on the launch of around ten games in a year and a half, more varied and in more territories.
Like every quarter, NCsoft publishes its income statements and in the first quarter of 2024, the Korean giant shows a drop in turnover, but nevertheless manages to increase its profits. In numerical terms, NCsoft earned 397.9 billion won (270.5 million euros) between the beginning of January and the end of last March, down 9% compared to the previous quarter, but for a net profit of 57.1 billion won (38.8 million euros), up 127% in one quarter. In other words, NCsoft recorded fewer sales, but its internal savings policy is bearing fruit and allowing it to improve its results.
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The mobile at half mast
How to explain the drop in turnover? By the disaffection of players for the group's mobile games, which generate a turnover of 169 million euros, but down 17% over the quarter. At the same time, NCsoft's PC games turnover (62.2 million euros) saw quarterly growth of 4%.
We remember that the previous quarter, NCsoft had failed to detail the turnover of each of its games, and the group's investors had noted this, denouncing a lack of transparency. NCsoft returns (almost) to its old habits and once again specifies the sales details of its titles… with the exception of Throne and Liberty. In the absence of details on the economic results of the group's latest MMORPG, we will note that Guild Wars 2 is NCsoft's historic PC game which earns the most (17.3 million euros), ahead of Lineage (€16.5 million) and Lineage 2 (€15.9 million). We understand that the Korean giant is inclined to encourage the development of the license with a Guild Wars 3.
Around ten launches in a year and a half
What about the future? We know that NCsoft is not as successful as shareholders would hope and the Korean giant is therefore making significant efforts both to recover its accounts and improve its stock price – as such, like many other giants of the technology, NCsoft announces a policy of repurchasing its own shares to (artificially) boost its stock price and better serve its shareholders.
Beyond the financial dimension and to improve its real economic performance, the developer intends to release more games, more quickly and in more territories around the world. A dozen game releases have been announced for the coming year and a half.
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In bulk, from this year 2024, NCsoft announces the launches of Lineage 2M in Southeast Asia and Blade and Soul 2 in China. We remember that the release of B&S2 in South Korea was a lamentable fiasco – the game was launched without promotion (NCsoft was counting solely on the notoriety of the license) and Korean players had severely punished a very aggressive economic model. The Chinese pre-registration campaign started a month ago and attracted a million players and the local closed beta seems to be more favorably received. NCsoft indicates that it has reworked its economic model, having removed the auto-play of the game (to focus the gameplay on action and content) and the group also intends to better communicate with local players, particularly within the framework of the ChinaJoy.
On the Western Front, NCsoft promises the launch of Throne and Liberty in Europe and across the Atlantic during the next semester.
The group also counts on its more modest games, including the arena game Battle Crush (the feedback from the beta is rather positive) and the Project BSS license-based Blade and Soul but in a round and colorful environment.
Three major games in 2025, but not only
In the longer term, during the year 2025, NCsoft intends to launch three blockbusters: first Aion 2 which is the subject of strong anticipation, as well as its dystopian shooter the Project LLL and its strategy MMO, the Project G. The developer is adding titles not yet announced: at least two casual games and two larger games based on strong licenses but adapted in new genres – the group does not specify whether it is integrating here the MMO project based on the Horizon license.
Finally, to further redress its accounts, the group believes that its own games will not be sufficient. Reason why NCsoft plans to open its Purple platform to third-party developers – we imagine that the group could want to help Korean studios break into the global market. In this context, NCsoft intends to rely more on ArenaNet (the developer of the license Guild Wars) and make it “the outpost of NC America”. As we know, it is a project initiated a long time ago and which has regularly failed. We will be curious to discover the result of this new initiative, this time led by the group's new management team.
Finally, NCsoft is also looking outside the video game market and intends to market its technologies (notably artificial intelligence) outside the entertainment video sector – for example in the aeronautics industry. Damn!