It’s that time of the year already, the first quarter financial reports are starting to stream in. Last year wasn’t so great for NCsoft, considering they lost a $28 million lawsuit against Richard Garriot. Sales of Aion, Lineage, and City of Heroes went down, while Lineage 2, Guild Wars, and NCsoft’s other titles saw a brief increase.
Another point worth noting is the American presence in NCsoft’s portfolio: It’s dropping. Whereas North America made up 12% of NCsoft’s sales in Q4 2009 (23,733), this figure has plummeted to 5% in Q1 2011 (or a paltry 7,129). Similarly, NCsoft’s presence in Japan and Taiwan has been suffering, albeit not nearly as much, and Europe has also plummeted from 12% down to 4% since Q4 2009. Royalties have skyrocketed, around 50% higher than the same time in Q1 2010. This is attributed mostly to Aion’s performance in China.
Although these figures look great for NCsoft as a whole, they don’t really spell well for the Western markets for the coming years. As sales continue to fall in North America and Europe, NCsoft continues to shut down games, with the most recent being Lineage (just in the west) this June. Perhaps the trend can turn around with NCsoft’s upcoming titles: Blade and Soul, Lineage III, and Guild Wars 2 are looking to draw in big crowds, with Guild Wars 2 likely being the first to launch.
I’ll be keeping watch on NCsoft as I always do.
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