It’s been one hell of a quarter for NCsoft – and we mean that for every interpretation of the phrase.
As readers might recall, in its Q2 2024 earnings report back in August, NCsoft was seeing a severe decline in profits – one described by Korean press as a “state of management crisis.” Even so, as we noted, Guild Wars 2 was continuing to perform well, and the company vowed it wouldn’t shift its focus away from core MMORPGs.
But in the interim, NCsoft announced a major organizational restructure, coupled with huge layoffs, in an attempt to avoid “becoming a chronically loss-making company.” The company also announced a sunset for Battle Crush (which never fully launched), promised to send Blade and Soul Neo westward, and finally got Throne & Liberty out the door here in the west, where it’s captured millions of players.
So that brings us to NCsoft’s Q3 2024 financials, which certainly help explain the panic back in October. While the company’s revenues are fairly even with the last year (9% up since last quarter and down only 5% since Q3 2023), its operating profit and net income are both in the red for the first time in a long time.
On the mobile side, Lineage M has surged back to the forefront of the company’s portfolio and kept the quarter from being a total bomb. Likewise, Classic Lineage and Lineage 2 on PC will end the year even with how they started, as Aion and Blade & Soul continue to dwindle. Perhaps the biggest surprise in the breakdown is Guild Wars 2, which put in its weakest showing of the year even as it launched an expansion (Redditors argue the expansion bump won’t come until Q4 – we’re not sure about that. We instead note that Janthir Wilds was up against some hefty World of Warcraft competition in August).
GW2 Sales from NCSoft Q3 2024 Financials
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Since you’re surely wondering: NCsoft has been failing to disclose per-game revenue data on Throne & Liberty ever since the MMO launched in Korea since the end of 2023. It launched globally in September 2024, but we still have no data. However, NCsoft does note that T&L’s “early access packs have surpassed [its] internal projections,” but it doesn’t seem to have made up for losses elsewhere.
During the investor call, CFO Willy Hong apologized for the “disappointing results” and recapped for investors the company’s plans to diversify and harvest revenue from both existing MMOs and future “megahit success” titles. Later this year, the company is expecting Journey of Monarch to perform well, and in 2025, the company is promising multiple new games – including Aion 2 – and a new server for Lineage 2M.
“For next year, we are expecting to have five releases, which includes our most expected titles, including Aion 2, [Project] LLL, and Tactan [Knights of the Gods]. And as we recently announced, we are going to also have a release of Breakers [Unlock the World], which is created by Vic Game, and also a new genre title based on the existing IP, which will target the global audience. And for external IPs and collaborations, besides Moon Rover and Vic Game, we’re going to announce our news regarding investment and publishing deals which will be made one in Korea and one overseas. One of these titles will be released in 2025, and the remaining one will also be released soon.”
Aion 2, Hong says, will target a global market but will take a “completely different approach” from Throne & Liberty “in terms of game design content, especially focused on combat, the monetization scheme, and the marketing strategies.” It also sounds as if it’ll emphasize progression and co-op play rather than competitive play – which would be a big deviation from original Aion. Indeed, that’s backed up later when Hong confirms that the company aims to use its core MMO IPs for “new genre games.”
Unfortunately, Hong also confirms last month’s news that NCsoft has shut down six projects, shuttered several teams, and is encouraging a “company-wide voluntary resignation program” in an attempt to reduce the “high fixed costs” he says are creating profit deficits. Ug.
• NCsoft talks possible PC shift, launch windows, and increased PvE content for Aion 2 • NCsoft Q1 2025: Guild Wars 2’s Janthir Wilds bump is over, Aion 2 is finally getting a reveal date • NCsoft Q4 2024: Guild Wars 2 and Blade & Soul are doing great, with Aion 2 waiting in the wings • Rumor: NCsoft may have canceled its unannounced Horizon MMO • Interview: NCsoft America’s new CEO, Jeonghee Jin, on awakening the ‘sleeping giant in the West’ • MMO studio NCsoft inks deals to publish ‘time survival’ shooter and medieval strategy RPG • NCsoft Q3 2024: NCsoft teases Aion 2 for 2025, says Throne & Liberty sales ‘surpassed internal projections’ • NCsoft MOBA Battle Crush will sunset in November without ever leaving early access • NCsoft Korea confirms restructure and layoffs, renames Throne & Liberty team to Studio X • NCsoft Korea is reportedly restructuring after multiple weak revenue quarters • NCsoft Q2 2024: NCsoft says it’s not shifting focus away from MMORPGs • NCsoft Q1 2024: Guild Wars 2 is on one hell of a revenue streak as Throne & Liberty stalls • Hostile NCsoft shareholder meeting reveals ArenaNet is working on Guild Wars 3 • NCsoft Q4 2023: Guild Wars 2 is a bright spot for NCsoft as Throne & Liberty stumbles • NCsoft Q3 2023: Mobile MMOs, not the classic PC titles, are dragging NCsoft down • NCsoft Q2 2023: Throne & Liberty delayed as revenues, mobile games, and MMOs decline • NCsoft Q1 2023: NCsoft confirms Throne & Liberty’s delay to back half of 2023 • NCsoft Q4 2022: Guild Wars 2 had a great 2022, Throne & Liberty is still launching by summer • NCsoft Q3 2022: Lineage W drives QoQ revenues, Guild Wars 2 had a great year • NCsoft Q2 2022: Throne and Liberty delayed to 2023, Aion 2 in dev, Guild Wars 2 booming • NCsoft Q1 2022: Revenues rise thanks to Lineage W and Guild Wars 2, Throne and Liberty arriving this year • NCsoft Q4 2021: Guild Wars 2 did great, but Lineage W drove revenues • NCsoft Q3 2021: Guild Wars 2 just had its best quarter in years • NCsoft Q1 2021: Overall revenues are down 30%, but Guild Wars 2 is perking up • NCsoft Q4 2020: Aion Classic was a huge success, Guild Wars 2 improves on 2019 • NCsoft Q3 2020: Guild Wars 2 just had its best revenue quarter in two years • NCsoft Q4 2019: It was a rough quarter for MMORPGs, especially Guild Wars 2 • NCsoft Q3 2019: Another flat financial quarter as NCsoft pumps money into NCWest • NCsoft Q2 2019: Guild Wars 2 may be eyeing a mobile version (again) • NCsoft 4Q 2018: Mobile made almost twice as much as all NCsoft’s other MMOs combined • NCsoft Q3 2018: NCsoft sales continue downward slide while online PC sales trend up • NCsoft Q3 2018: Aion, Blade & Soul, Guild Wars 2 revenues dip, while NCsoft teases three new titles • NCsoft Q2 2018: Revenues for all NCsoft MMORPGs are down in Q1 2018 except… Aion? • NCsoft Q1 2018: NCsoft has hired 1000 employees in the past few years, considers VR and ARG titles • NCsoft Q4 2017: Guild Wars resurges as Blade & Soul and Lineage M drive profits • NCsoft Q3 2017: Lineage M drives record profits, Guild Wars 2 Path of Fire isn’t too shabby either • NCsoft Q2 2017: Guild Wars 2 drops to new all-time low, Blade and Soul heads to console • NCsoft Q1 2017: Tumbles for Lineage, Guild Wars 2, plus new leadership for Lineage Eternal • NCsoft 4Q 2016: Record sales, WildStar’s fate, Lineage Eternal launch • NCsoft Q3 2016: Declines for WildStar, Guild Wars 2, and Blade & Soul • NCsoft Q2 2016: WildStar up, Guild Wars 2 down • NCsoft Q1 2016: Blade & Soul is booming, WildStar is tumbling • NCsoft Q4 2015: Sales surge for Guild Wars 2, bump for WildStar • NCsoft Q3 2015: Guild Wars 2, WildStar, all sales dip downward [Updated] • NCsoft Q2 2015: Guild Wars 2 is up, WildStar is down • NCsoft Q1 2015: Growth for Guild Wars 2, further deflation for WildStar • NCsoft Q4 2014: NCsoft financials paint a grim picture for WildStar Source: NCsoft, Alphaspread
