NCsoft profit slides 75 percent as mobile games struggle to sell

Industry

NCsoft profit slides 75 percent as mobile games struggle to sell

Published: 05 Aug. 2024, 18:59

CHO YONG-JUN
cho.yongjun1@joongang.co.kr

NCsoft's R&D center in Pangyo, Gyeonggi [NCSOFT]

Korean gaming outlet NCsoft reported a 75 percent on-year decline in operating profit in the second quarter, hit by increasing marketing costs and a slump in mobile game sales.

The company’s operating profit of 8.8 billion won ($6.45 million) outperformed the market consensus compiled by market tracker FnGuide, which had indicated a loss of 1.4 billion won.

Sales came at 368.9 billion won during the April-June period, down 66 percent from the previous quarter and 16 percent on year, slightly missing the market expectation of 386.4 billion won.

Mobile game sales decreased by 13 percent from the previous quarter to record 218 billion won. PC online games also saw a 6 percent decline.

In particular, mobile game Lineage W experienced a noticeable decline in sales, falling from 82.9 billion won to 65.6 billion won. Sales of Lineage 2M slid from 55.9 billion won to 42.3 billion won.

NCsoft announced Monday that it had invested 37 billion won in Vic Game Studios to diversify its revenue streams. The company obtained the global publishing rights to the domestic developer's upcoming title Breakers Unlock the World.

“NCsoft will continue to look for investment opportunities […] and we are continuing to pursue the merger and acquisition process of a global game developer,” NCsoft Vice President and Chief Financial Officer Hong Won-jun said.

NCsoft's release road map, which includes three upcoming titles based on the company's existing intellectual property, will continue as planned, the company said.

“The first title will be released globally by the end of this year, with the first teasing campaign starting this month. The other two games are slated for release in the first half and the second half of next year, respectively,” Hong said.

Blockbuster titles Project G, NCsoft’s first real-time strategy game, is scheduled for release in the first half of 2025, while AION 2 is slated, as planned, for the second half of 2025. Project LLL, its open-world massively multiplayer online (MMO) shooter, will launch in the fourth quarter of 2025.

“We also plan to release two casual games next year,” CFO Hong said.

“Looking into 2026, we are currently in development of an MMORPG title based on a global IP followed by a shooter game with a unique concept.”

BY CHO YONG-JUN [cho.yongjun1@joongang.co.kr]