Lineage's Declining NCSoft, Q2 Operating Profit Down 71%
NCSoft's second-quarter earnings have significantly declined. The drop in revenue from its flagship Lineage series is the main cause.
NCSoft announced on the 9th that it recorded 440.2 billion KRW in sales, 35.3 billion KRW in operating profit, and 30.5 billion KRW in net profit for the second quarter of this year.
Sales and operating profit decreased by 30% and 71%, respectively, compared to the same period last year. Net profit fell by 74% year-over-year. All earnings also retreated compared to the first quarter.
By region, sales were 285.1 billion KRW in Korea, 87.4 billion KRW in Asia, and 31.4 billion KRW in North America and Europe. Royalty revenue was 36.3 billion KRW. Overseas and royalty sales accounted for 35% of total revenue.
Mobile game sales amounted to 296.9 billion KRW. By product, ‘Lineage M’ generated 127.8 billion KRW, ‘Lineage W’ 102.8 billion KRW, ‘Lineage 2M’ 62.0 billion KRW, and ‘Blade & Soul 2’ 4.3 billion KRW.
PC online game sales were 88.2 billion KRW. ‘Lineage’ earned 24.3 billion KRW, ‘Lineage 2’ 23.0 billion KRW, ‘Aion’ 15.8 billion KRW, ‘Blade & Soul’ 5.8 billion KRW, and ‘Guild Wars 2’ 19.2 billion KRW.
NCSoft’s earnings decline is due to the release of competing titles in the MMORPG (Massively Multiplayer Online Role-Playing Game) market, its core genre, which led to decreased revenue from the Lineage series. Lineage series sales in the second quarter dropped by about 40 billion KRW compared to the first quarter.
Meanwhile, the new PC and console title ‘Throne and Liberty (THRONE AND LIBERTY, TL)’ improved its content and systems based on feedback from domestic tests conducted in May. It is currently preparing user tests with its global publishing partner, Amazon Games. Specific plans will be announced through Amazon Games.
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NCSoft is developing four new games of various genres for the global market. Starting with the launch of the puzzle game ‘PUZZUP: AMITOI’ in the second half of 2023, it plans to sequentially release the brawler action game ‘Battle Crush,’ the collectible RPG ‘Blade & Soul S,’ and the real-time strategy game (RTS) ‘Project G.’
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