Stretching Before New Release... Will NCSoft Regain Its 'Hwangjejeu' Status?

Rebound Movement After Hitting Yearly Low Amid Multiple Adverse Factors
Blade and Soul 2 Release Becomes Visible... Expectations Rise for Overseas Expansion Including China

Blade & Soul 2 Official Pre-release Video (Source: NCSoft YouTube Capture)

[Asia Economy Reporter Minwoo Lee] NCSoft's stock price, which had fallen to the 760,000 KRW range about eight months ago due to the sluggish performance of its flagship 'Lineage' series, is rebounding. This appears to reflect growing expectations as the release of this year's most anticipated title, 'Blade & Soul 2,' which has been delayed multiple times, is becoming more imminent.

As of 9:17 AM on the 19th, NCSoft's stock price rose 0.14% from the previous day to 840,000 KRW. The upward trend has continued for a week since the 12th. Compared to the yearly low of 765,000 KRW recorded on the 13th, the stock has risen by about 10%. This contrasts with the KOSPI, which fell about 0.85% during the same period. For the first time since the 6th, both foreign and institutional investors have shown simultaneous buying interest. Notably, foreign investors alone net purchased NCSoft shares worth 45.9 billion KRW on the 16th, ranking second among all stocks in foreign net buying that day. This has fueled expectations that NCSoft is stepping off the 'bottom' and entering an upward trend.

Previously, NCSoft's stock price peaked at 1,048,000 KRW on February 8th and then followed a downward trajectory. The boycott movement targeting flagship titles such as Lineage M and Lineage 2M emerged, and the underperformance of Trickster M, released in May, further exacerbated difficulties. NCSoft's revenue rankings, which Lineage M and Lineage 2M had held for years (based on Google Play), were overtaken by Kakao Games' new release 'Odin,' signaling a red flag for earnings. Moreover, the repeated delays of the highly anticipated 'Blade & Soul 2' release this year dampened expectations. According to financial analysis firm FnGuide, NCSoft's consolidated market consensus for Q2 this year forecasts revenue of 613.4 billion KRW and operating profit of 185.9 billion KRW, with operating profit expected to decline by 11.06% compared to the previous quarter.

However, a positive signal has recently emerged. The release of Blade & Soul 2 is now tentatively scheduled for next month. NCSoft decided to end the pre-registration and pre-character creation, which began in February and April respectively, on this day. Considering that pre-registration typically closes with the official game launch, this move suggests the release is imminent and is interpreted as a strategic step to defend corporate value. Despite lowering target prices, securities firms still propose prices above 1,000,000 KRW. Seunghoon Lee, a researcher at IBK Investment & Securities, stated, "With the release of Blade & Soul 2, the improvement in Q3 earnings will be significant," and added, "Subsequently, the launch of multiple new games and the expansion of Blade & Soul 2 and Lineage 2M into China will be highlighted."

This content was produced with the assistance of AI translation services.