NCSoft Q4 Finances: Sales/Profit Down


NCSoft has posted their fourth quarter finances. Sales were hit with a 6% loss since the last quarter, with operating profit reportedly taking a 51% hit and net income down 42% since last quarter. NCSoft attributes the decline in sales and profits due to scaled back in-game item sales.

Year over year sales from 2011 compared to 2010 saw a similar drop in revenue by 7%, operating income by 24%, and income by 21%, due to what NCSoft refers to as a weakened user base, and an expansion in research and development. Labor costs increased 9%, marketing increased 25%, and variable expenses grew 7%.

You can see from the chart above that Lineage has continued its dip in sales, which NCSoft attributes to a lack of item sales in-game. Lineage II’s sales opened up somewhat, attributed in the release to “roust sales in Japan.” Aion saw a dip in sales of about 8%, as did Guild Wars (22%), and City of Heroes has shown a 22% increase in sales over Q3.

In terms of regional breakdown, Korea’s stake in NCSoft dived from 69% in Q3 to 60% in Q4. North America rose from 4% to 5% while Europe dipped from 3% to 2%. Japan almost doubled its share, from 12% to 21%, while Taiwan lowered its share from 3% down to 2%. Royalties increased to 10% from 8%.

City of Heroes and Lineage II went free to play recently, with Aion moving free to play in Europe.

(Source: NCSoft Finances)

Guild Wars 2 Opens Door For Non-Cosmetic Cash Shop


By now, I hope that I don’t have to lecture any of you on how important wording is in this industry. When Realtime Worlds said that they had no intention of shutting down All Points Bulletin, they didn’t factor in the results of their ongoing chapter 11 bankruptcy forcing the game to shut down. When Turbine stated that they had no intention of selling equipment with stats at the time, they technically spoke the truth. When Sony answered the free to play question by saying they would not alter existing player’s game, and launching a separate product, they were telling the truth.

Guild Wars Guru has noticed an alteration made to the Guild Wars wiki by user JohnSmith, who is a confirmed Arenanet employee. Previously, the article read:

Yes, micro-transactions will exist. These will be cosmetic additions which will not affect balance or gameplay, similar to the transactions offered by Guild Wars.

Now the article reads:

Yes, micro-transactions will exist. Be assured goods and items bought for cash in GW2 do not offer any advantage over those available in the game through the investment of time.

So the wording changes from only cosmetic items to not being more powerful than existing items. Now, this could simply be referring to Arenanet’s plan to include mission packs and transmutation stones in the cash shop, or the possibility of boosters, or it could open the door for selling equipment that is only as powerful as equipment found in-game. Martin Kerstein of Arenanet weighs in later in the thread.

As usual, everybody just needs to calm down a bit. This change was done to actually make the wording easier to understand – seems like that was not the case.

But the statement in it is still the same: Nothing you will be able to buy in the in-game store will give you an advantage over people who are not buying anything. That is the baseline.

So the outcome is that Arenanet, for now at least, is being vague on a familiar level to companies of the past. For now we’ll simply have to wait for clarification by Arenanet on an exact list of what will be sold in the Guild Wars 2 cash shop.

Perpetuum Online Extends Active Accounts, DDOS Attacks


Back in January I talked about the issue surrounding a certain someone launching a distributed denial of service attack on indie MMO Perpetuum Online. The attacks began in January and caused the server to become unstable for many players. For now, however, the developer believes that the attacks are over. Players are being compensated with three extra days added to their subscription.

Probably most of you are aware of the recent DDOS-attacks against the Perpetuum servers. They seem to have stopped now, but we have and still are taking steps to strengthen our defenses against these kinds of attacks in the future.

To compensate for lost game time, we have decided to extend all active accounts (including trial accounts) by 3 days, effective after today’s patch.

We’d like to say a big thank you to all our players for their continued support through these times, even when they couldn’t even log in and play.

Hopefully this is the end of the story, and the developers can move on to more important issues.

(Source: Perpetuum Forums)

Everquest Mac Accidentally Diagnosed As Dead


How much does John Smedley love you? Enough that, earlier tonight, he posted this on Twitter:

Ok EQ Mac Players. You are a wonderful group of players. We will leave it running with no changes or subscription fees. Details soon.

Sony announced with sorrow last month that Everquest Mac would come to an end on March 29th. Players mourned the loss of what many play for the experience of a “near classic” Everquest, what with EQMac still being based in the Planes of Power (4th expansion, 2002).

Additional details will no doubt come this week or next, but it is reassuring to see the game being run with no changes or subscription fees.

(Source: John Smedley Twitter)

Why Aren’t You Playing: Drakensang Online


[Addendum: I mistakenly stated that Drakensang Online was built on the Unity Platform. This was incorrect, it is built off of Bigpoint’s Nebula3 engine.]

Drakensang Online is a straight up isometric dungeon crawler, ala Diablo, and for me that is enough of a reason to at least pick the game up and give it a play through. For fans of dungeon crawlers, Drakensang does not disappoint. Otherwise, the game doesn’t have much to offer outside of the wholesale slaughter of minions and collecting of gear with incrementally higher stats.

The first thing you’ll notice about Drakensang is that the game looks and sounds great. Not great as in comparable to your full client games, but the Nebula3 engine does an excellent job of cramming as much visual quality as it can into the tiny browser package.

Combat handles fluidly with very minor targeting issues. Most of your game time will consist of walking around city hubs with other players, upgrading your equipment, selling your vast quantity of loot, and taking on quests. The quests are the usual fashion of “kill ten rats,” “kill rats until they drop ten buckets” and “use items on nodes.” PvP takes place either through consensual open world or through team battlegrounds.

Following the lead of Diablo3, Drakensang employs a mechanic of health orbs that drop during battle that can be picked up to restore health. Bosses drop these at regular intervals as their health is whittled away, and they replace the necessity of carrying and sucking down large quantities of potions. In addition, while your list of abilities is rather small in comparison to most MMOs, you’re likely to find a proper use for each ability granted to you.

The cash shop in Drakensang is powered by Andermant, a currency that can be slowly obtained through normal gameplay via quest rewards and random drops, or via real money at a base rate of $2 for 1,600 up to 246,700 (odd number) for $200 (a 35% saving!). Andermant can be used to purchase temporary buffs in experience and strength/defense. To expand your inventory to its maximum storage (49 extra spaces) would cost you over $200, or 249,600 Andermant.

For what it is worth, I manage to accumulate at least forty Andermant in each play period (around an hour, sometimes less), most of which I put into upgrading my weapons and armor. You’ll come across chests in dungeons that require keys that can only be purchased with Andermant, to which I can only say give them a pass. I haven’t had a single chest open that was worth the hundreds of Andermant that the keys cost.

If you were one of those people who passed up on Torchlight because it didn’t have any multiplayer (and thus no PvP) and played Diablo and Diablo II primarily for the PvP, you will likely be put off by the presence of the pay-for-advantage system. Otherwise, I can’t see PvE focused players getting angry that somewhere, someone is killing bosses in one or two less hits. And even if you get bored with Drakensang, you can always return. It isn’t going anywhere, not with Bigpoint’s profit margins.

Drakensang Online isn’t exactly a deep game, but then again fans of the genre are likely here for the same reason people enjoy Serious Sam, for the hacking, slashing, spell flinging, and masses of limbs and entrails flying every which way. It is popular, open world PvP is consensual, and the cash shop is generous (to an extent) if you’d rather not throw real money in. Everyone of the same class looks virtually the same, but that factor quickly moves aside to the actual meat of the game: Gremlin genocide.

Why Aren't You Playing: Drakensang Online


[Addendum: I mistakenly stated that Drakensang Online was built on the Unity Platform. This was incorrect, it is built off of Bigpoint’s Nebula3 engine.]

Drakensang Online is a straight up isometric dungeon crawler, ala Diablo, and for me that is enough of a reason to at least pick the game up and give it a play through. For fans of dungeon crawlers, Drakensang does not disappoint. Otherwise, the game doesn’t have much to offer outside of the wholesale slaughter of minions and collecting of gear with incrementally higher stats.

The first thing you’ll notice about Drakensang is that the game looks and sounds great. Not great as in comparable to your full client games, but the Nebula3 engine does an excellent job of cramming as much visual quality as it can into the tiny browser package.

Combat handles fluidly with very minor targeting issues. Most of your game time will consist of walking around city hubs with other players, upgrading your equipment, selling your vast quantity of loot, and taking on quests. The quests are the usual fashion of “kill ten rats,” “kill rats until they drop ten buckets” and “use items on nodes.” PvP takes place either through consensual open world or through team battlegrounds.

Following the lead of Diablo3, Drakensang employs a mechanic of health orbs that drop during battle that can be picked up to restore health. Bosses drop these at regular intervals as their health is whittled away, and they replace the necessity of carrying and sucking down large quantities of potions. In addition, while your list of abilities is rather small in comparison to most MMOs, you’re likely to find a proper use for each ability granted to you.

The cash shop in Drakensang is powered by Andermant, a currency that can be slowly obtained through normal gameplay via quest rewards and random drops, or via real money at a base rate of $2 for 1,600 up to 246,700 (odd number) for $200 (a 35% saving!). Andermant can be used to purchase temporary buffs in experience and strength/defense. To expand your inventory to its maximum storage (49 extra spaces) would cost you over $200, or 249,600 Andermant.

For what it is worth, I manage to accumulate at least forty Andermant in each play period (around an hour, sometimes less), most of which I put into upgrading my weapons and armor. You’ll come across chests in dungeons that require keys that can only be purchased with Andermant, to which I can only say give them a pass. I haven’t had a single chest open that was worth the hundreds of Andermant that the keys cost.

If you were one of those people who passed up on Torchlight because it didn’t have any multiplayer (and thus no PvP) and played Diablo and Diablo II primarily for the PvP, you will likely be put off by the presence of the pay-for-advantage system. Otherwise, I can’t see PvE focused players getting angry that somewhere, someone is killing bosses in one or two less hits. And even if you get bored with Drakensang, you can always return. It isn’t going anywhere, not with Bigpoint’s profit margins.

Drakensang Online isn’t exactly a deep game, but then again fans of the genre are likely here for the same reason people enjoy Serious Sam, for the hacking, slashing, spell flinging, and masses of limbs and entrails flying every which way. It is popular, open world PvP is consensual, and the cash shop is generous (to an extent) if you’d rather not throw real money in. Everyone of the same class looks virtually the same, but that factor quickly moves aside to the actual meat of the game: Gremlin genocide.

Falling Out #13: Sleeping Around


The second mistake is falling asleep in a house that Black Mage occupies. The first mistake? Occupying the same house.

Square Enix Redacts Server Merger Announcement


Remember last week when Square Enix announced the details of their server merger? Well who says that Square doesn’t listen to their community? After an enormous amount of discussion on the forums, Square is taking the server merger back to the drawing board.

We would like to take this opportunity to thank all of you for the wealth of feedback you have provided us with following the announcement made on February 9, 2012 (Thursday), regarding the World merge and character transfers. In order to ensure that the most desirable and effective outcome is achieved, we will be reassessing the method of the merger process.

Initially, the server merger was set to take the game’s eighteen servers and merge them down to ten. Square has promised to release more information as the company decides upon what to do next.

(Source: Lodestone)

Star Vault Has 5 Employees, Says Henrik At Web Hearing


Sweden’s Aktie Torget Exchange has posted a web hearing with Star Vault CEO Henrik Nystrom, of which you can find the full translated version below. For the sake of brevity, I have compiled some of the more important points.

If you didn’t catch Star Vault’s Q3 2011 finances, the company reported that they had reduced staff without offering an exact figure. In the first question of the hearing, Henrik directly addresses this topic:

5 people are employed by Star Vault, then we have a team that works in the form of project employment/freelance when there is a need for it.

As he has done before, Henrik discusses why the game has faced its population issues, particularly with regard to the experience new players have upon joining, that the existing community must be helpful to new players who seek assistance, otherwise they may not return.

When asked about how long he expects Mortal Online to survive, Henrik likened the game to MMOs that have survived for over a decade. He also notes that Star Vault expects Mortal Online to break even and start profiting in mid 2012. Publishing with LeKool to bring Mortal Online to China should result in some results this summer.

Star Vault’s long term goal is 50,000 subscribers, a goal Henrik sees as reasonable. The average demographic for Mortal Online is the 18-20 male crowd.

(Source: Aktie Torget Exchange)

Thanks to Slapshot1188 for the tip.

Darkfall’s New Investors: InternetQ


Although inevitably someone will come and tell me otherwise, investors have historically had major impacts on MMO development and direction on a fundamental level. For instance, I would never make the direct claim that Insight Venture Partners told Jagex to reverse course and start including exclusive in-game items packaged in with certain vendor cards, but if you look at the history, the two match up. Now, you could also speculate good features coming from such new investors, including the reversal of the free trade restrictions, finally thrashing bots from the game, etc.

InternetQ has announced a €2.6 million investment in Aventurine, affected by a convertible bond set to mature in March 2015, but InternetQ can convert it into equity at any time. If this takes place within 7 months of the Darkfall 2.0 launch, InternetQ will own 40% of Aventurine, with the option to buy more shares to become majority share holder.

The investment is specifically for Darkfall 2.0, the launch of free to play Darkfall in Asia, and development of InternetQ’s AKAZOO network.

With the Darkfall’s sequel launch later this year, Aventurine will have the opportunity to become a successful franchise.

Hold the phone: Darkfall is set to become a franchise? Is InternetQ suggesting that Darkfall 1.0 will continue alongside Darkfall 2.0?

It will be interesting to see the effect InternetQ has on Darkfall’s development. At the risk of sounding pessimistic, the press release tells me that InternetQ doesn’t fully understand exactly what Darkfall 2.0, or for that matter an MMO, really is and may be under the impression that Darkfall 2.0 is a standalone sequel (unless they know something we don’t)

(Source: InternetQ release)