NCSoft Releases Quarterly Earnings, Lineage M Sees Lower Demand

NCSoft’s quarterly earnings have been made available and the results are not so bad. Sales fell 1% over the same time last year thanks to early recognition of Lineage 1 promotion sales with NCSoft pointing to lower demand than expected for Lineage M, the mobile release of Lineage. Operating profit and income plummeted 60-70% year over year due to incentives paid on the back of high earnings last year, meaning NCSoft players should not see these figures as the end times.

To put it into perspective, NCSoft’s net income dropped from 66,804 (million Korean Won) to 17,394 (49,410) over the past quarter. Labor cost increases due to increased headcount and incentives rose 33% by 33,175 while royalty payments exploded 398% over last quarter by 2,261. In short, while sales fell 1% over last year, operating costs increased 24% due to said overhead costs.

On the games front, Lineage sales plummeted by more than half, however much of that is due to the aforementioned early sales recognition is unknown. Lineage II and Aion similarly dipped in revenue, although not by nearly as large of a margin, while Blade & Soul grew compared to the last two quarters and Guild Wars 2 remained relatively stable. Wildstar, as mentioned in the previous release, is no longer listed on NCSoft’s quarterly reports.

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