Tag: Guild Wars

NCSoft Q1 2012: Aion/Lineage Up, Lineage 2 Down


NCSoft has published their first quarter finances, and as always there is good news and bad news.

  • Quarterly sales were up, although profits were down nearly 20% due to increased labor cost, royalty expenses, and other factors.
  • Korea grew due with sound in-game item sales, while Japan dropped.
  • Aion and Lineage performed strongly.
  • Lineage 2 saw a notable loss in sales due to a “weakened user base,” according to the report.
  • City of Heroes also dropped in sales, while Guild Wars saw an increase.

The data above is sourced from the official NCSoft earnings releases and is presented in a more digestible form.

Guild Wars Dropping .05% Of Players, Old Windows OS


As a college student living off of what I can, I am sympathetic to the plight of people who cannot afford to buy a new computer. Unfortunately, the time comes in any game’s life where those who for one reason or another are unable to upgrade, are left behind, and generally developers ensure that this comes at a time when it affects as few customers as possible. After all, no one likes having a game they bought and probably invested in subscriptions or cash shop items stripped away from them.

For Guild Wars, Arenanet has announced that on June 14th, 2012, the game will no longer support Windows 95, 98, 98SE, and Millenium Edition. According to Stephane Lo Presti, this should impact less than .05% off the community.

Since the launch of Guild Wars in 2005 we’ve stayed locked into our original minimum system requirements. Unfortunately, the game has reached a point where this is preventing us from deploying important features.

For Wine users, whether or not Guild Wars will still function is up in the air as it is unsupported.

(Source: Guild Wars forums)

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.

NCSoft Third Quarter Finances: Profit/Revenues Down


NCSoft has released its financial documents for the third quarter, and the report starts with “Revenue and Operating Income came down due to soft promotions for in-game items sales versus Q2.” In fact, the publisher is reporting a 22% loss quarter over quarter and 32% year over year loss in operating profit, as well as a 12% loss in sales over last quarter, and a 33% loss in net income over the same quarter.

Income from Aion rose slightly over the last quarter, with Lineage coming down from its big jump. Lineage 2 lost less than it did last quarter, while income from Guild Wars continued its decline and City of Heroes increased slightly. Lineage’s loss of revenue is noted as being related to scaling back of cash shop items in the game’s Korean and Taiwan distributions. The quarter over quarter expense increase is due to NCsoft’s Japan donation.

Now to talk region distribution. North America’s share dropped 10% over last quarter, with Europe dropping 6% of its sales. Japan’s share increased 6% over last quarter, with Korea dropping 13% and royalties taking a dip as well.

Next quarter will see a dramatic rise in sales by City of Heroes, and hopefully Aion with the number of content updates. The announcement of Lineage Eternal should bring some interest to the other two games.

NCsoft Q2 Release: Profits Up, Aion/Lineage 2 Down


The first thing you’ll notice about NCsoft’s quarterly report for the second quarter of 2011 is a massive spike in sales from Lineage. NCsoft attributes this to strong item sales promotions. As of now, Lineage is the company’s best source of income, despite the game’s removal from its Western presence just a couple of months ago. Lineage’s item sales have propelled a 67% year over year increase in income, despite a 1% decline in overall sales over the same period. City of Heroes and Guild Wars continued a slow decline, although City of Heroes will undoubtedly hit an increase in sales once the game goes free to play later this year.

Lineage’s success, however, comes on the heels of both Lineage II and Aion dropping a hefty amount, attributed to “slow seasonality” in the report. I talked last year about NCsoft’s regional breakdown in sales, as a response to why some western gamers described feeling like NCsoft doesn’t pay the hemisphere as much attention. As of Q2 2010, the regional breakdown is as such:

  1. Korea: 64%
  2. Japan: 10%
  3. Royalties: 7%
  4. N. America: 9%
  5. Europe: 5%
  6. Taiwan: 3%

Those figures in Q2 2011:

  1. Korea: 71%
  2. Japan: 10%
  3. Royalties: 9%
  4. N. America: 4%
  5. Europe: 3%
  6. Taiwan: 3%

NCsoft Q1 2011 Finances In: Profits Up!


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.

April Fool’s 2011 Roundup


April Fool’s is one of my favorite days of the year, because I love seeing what jokes companies will come up with, my personal favorite being Google’s yearly jokes. Today isn’t even over, and I think the award for the best joke goes to ArenaNet with Guild Wars, who not only created a trailer and page for the Commando class, but added in an entire mini-game to Guild Wars as a “preview.”

Here is an ongoing roundup of today’s jokes, good and bad.

April Fool's 2011 Roundup


April Fool’s is one of my favorite days of the year, because I love seeing what jokes companies will come up with, my personal favorite being Google’s yearly jokes. Today isn’t even over, and I think the award for the best joke goes to ArenaNet with Guild Wars, who not only created a trailer and page for the Commando class, but added in an entire mini-game to Guild Wars as a “preview.”

Here is an ongoing roundup of today’s jokes, good and bad.

Guild Wars: This is How You Charity 10K Edition


Pink Day in LA

“Pink Day in LA” was a Guild Wars event held this past weekend, encouraging players to dye their armor pink for breast cancer awareness. Malibu Barbie teamed up with Gaming World Entertainment Network and Gamers Giving Back to bring cancer awareness to Guild Wars. Players purchased almost three hundred thousand bottles of pink dye, donating almost eleven thousand dollars in the process.

“I was totally amazed when we hit our original goal of $1,337 early,” Malibu Barbie said.

More on charities as they appear.