Lineage's 1.8 Billion Dollar, uh, Lineage


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Lineage is NCSoft’s most successful title to date, launching in 1998 and still going strong fifteen years later in Korea and not in North America or Europe where the game was decidedly less popular. Still, Lineage has quite a following in Korea, Japan, China, and several other territories. With the game’s fifteen year anniversary a couple months behind it, NCSoft has revealed that Lineage has raked in $1.8 billion in sales. On second thought, that doesn’t sound impressive enough. Think of it as two trillion won, or ?2,000,000,000,000.

If South Korea celebrated Thanksgiving, I imagine the folks at NCSoft would be stuffing their turkey with money today.

(Source: Destructoid)

[Community] NCSoft’s Support Timeline


ncsofts

For this week’s Community Concerns, I decided to put together a graph of NCSoft’s library of MMOs, past and present. The above graph shows each game’s support timeline from the year it launched to the year that it shut down or to present if it is still running. Several of the titles may seem inaccurate as they are based on the Korean launch and may be a year or more ahead of their western launch, and at least one title has not launched in the west at all. I also decided to include Lineage as it is still in operation in Korea.

Keep in mind that Blade & Soul has not launched in the west and Lineage has shut down in the west.

[Community] NCSoft's Support Timeline


ncsofts

For this week’s Community Concerns, I decided to put together a graph of NCSoft’s library of MMOs, past and present. The above graph shows each game’s support timeline from the year it launched to the year that it shut down or to present if it is still running. Several of the titles may seem inaccurate as they are based on the Korean launch and may be a year or more ahead of their western launch, and at least one title has not launched in the west at all. I also decided to include Lineage as it is still in operation in Korea.

Keep in mind that Blade & Soul has not launched in the west and Lineage has shut down in the west.

Top 5: MMOs That We Can't Have


hellgate3

Being a somewhat impatient person is rather incompatible with writing about the MMO genre, an industry where waiting is merely half the battle. Between games announced half a decade before their intended release and those launched in Korea, China, or Japan only to take a further few years to make it over to the west, it’s enough to pull your hair out over. It is especially aggravating when you figure games like Phantasy Star Online 2, who we recently found out may never release in the west at all. Then you have games like Hellgate: London, Lineage, and Dungeon Fighter Online who, despite shutting down in west, continued operation overseas.

So with that in mind, let’s look at the top five MMOs we can’t have, and by we I mean people in the Americas and Europe.

5. ArcheAge

archeage

Despite what some of my readers may believe, I don’t talk about ArcheAge’s content updates to tease you, but I agree with the frustration that I see in many of these articles. ArcheAge, unlike its brothers and sisters, gets so much coverage from western outfits that you’d think the game had already been launched here. Every mention of patch notes and content updates is another reminder of the game’s continued delay and unclear future for westward expansion.

The “why we don’t have ArcheAge” coverage also instills a constant chilling reminder as to the recent business issues surrounding the game’s would-be western publisher, Trion Worlds, between several rounds of layoffs, server mergers, the poor reception of Defiance, allegations of neglecting overseas publishers leading to Rift being shut down in several foreign territories, and the continued difficulties surrounding End of Nations. ArcheAge will eventually release in the west…hopefully. Maybe.

4. Phantasy Star Online 2

pso2_title

I decided to stick Phantasy Star Online 2 as number four on this list because it is technically playable. While Phantasy Star Online 2 is likely to not hit western markets, due to an alleged lack of faith in the game’s ability to be profitable, many gamers have already signed on to the Japanese servers using an English patch. This process should be made easier when the game releases a localized version for English speaking Asian regions.

3. Blade & Soul

cat

NCSoft has refused to censor Blade & Soul for the west, but if an uncensored MMO falls in the woods and no one is able to play it, does it make a sound? Blade & Soul has the backing of NCSoft, but the game has quickly dropped down in sales to the levels of Lineage II and “other” and is likely to continue dropping. If the game continues to do poorly, it is possible that the game could be shut down before it ever has the chance to be localized.

But NCSoft isn’t the kind of company that cuts an MMO loose just because it hit some hard times, right?

2. Lineage

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Lineage is particularly painful not just because the game continues to operate in its native Korea after being shut down in the west, but it is outperforming every single one of NCSoft’s other games. Lineage has been NCSoft’s #1 top selling game for the past year and has grown exponentially over the past several quarters. Despite its healthy population in Korea, however, the game was not performing well in America and Europe to continue supporting the localized version.

The good news at least is that while Lineage I is over aside from private servers, Lineage Eternal will probably release before the world ends.

1. Black Gold Online

Black-Gold-Online-2-620x350

 

Black Gold Online is likely to release before any of the other games on this list, but it is the most interesting concept so I decided to put it at number one. If you don’t know, Black Gold Online is by the creatively brilliant minds at Snail Games who brought us Age of Wushu, and carries one of the more interesting monetization models of recent titles. It is difficult to understand, and I am not entirely sure that I have explained it properly, but the game has no cash shop or subscription, but instead monetizes drops in some fashion.

So far all we have seen is this concept in theory, and it could go either way in terms of its reception. Assuming we ever get it.

Top 5: MMOs That We Can’t Have


hellgate3

Being a somewhat impatient person is rather incompatible with writing about the MMO genre, an industry where waiting is merely half the battle. Between games announced half a decade before their intended release and those launched in Korea, China, or Japan only to take a further few years to make it over to the west, it’s enough to pull your hair out over. It is especially aggravating when you figure games like Phantasy Star Online 2, who we recently found out may never release in the west at all. Then you have games like Hellgate: London, Lineage, and Dungeon Fighter Online who, despite shutting down in west, continued operation overseas.

So with that in mind, let’s look at the top five MMOs we can’t have, and by we I mean people in the Americas and Europe.

5. ArcheAge

archeage

Despite what some of my readers may believe, I don’t talk about ArcheAge’s content updates to tease you, but I agree with the frustration that I see in many of these articles. ArcheAge, unlike its brothers and sisters, gets so much coverage from western outfits that you’d think the game had already been launched here. Every mention of patch notes and content updates is another reminder of the game’s continued delay and unclear future for westward expansion.

The “why we don’t have ArcheAge” coverage also instills a constant chilling reminder as to the recent business issues surrounding the game’s would-be western publisher, Trion Worlds, between several rounds of layoffs, server mergers, the poor reception of Defiance, allegations of neglecting overseas publishers leading to Rift being shut down in several foreign territories, and the continued difficulties surrounding End of Nations. ArcheAge will eventually release in the west…hopefully. Maybe.

4. Phantasy Star Online 2

pso2_title

I decided to stick Phantasy Star Online 2 as number four on this list because it is technically playable. While Phantasy Star Online 2 is likely to not hit western markets, due to an alleged lack of faith in the game’s ability to be profitable, many gamers have already signed on to the Japanese servers using an English patch. This process should be made easier when the game releases a localized version for English speaking Asian regions.

3. Blade & Soul

cat

NCSoft has refused to censor Blade & Soul for the west, but if an uncensored MMO falls in the woods and no one is able to play it, does it make a sound? Blade & Soul has the backing of NCSoft, but the game has quickly dropped down in sales to the levels of Lineage II and “other” and is likely to continue dropping. If the game continues to do poorly, it is possible that the game could be shut down before it ever has the chance to be localized.

But NCSoft isn’t the kind of company that cuts an MMO loose just because it hit some hard times, right?

2. Lineage

11

Lineage is particularly painful not just because the game continues to operate in its native Korea after being shut down in the west, but it is outperforming every single one of NCSoft’s other games. Lineage has been NCSoft’s #1 top selling game for the past year and has grown exponentially over the past several quarters. Despite its healthy population in Korea, however, the game was not performing well in America and Europe to continue supporting the localized version.

The good news at least is that while Lineage I is over aside from private servers, Lineage Eternal will probably release before the world ends.

1. Black Gold Online

Black-Gold-Online-2-620x350

 

Black Gold Online is likely to release before any of the other games on this list, but it is the most interesting concept so I decided to put it at number one. If you don’t know, Black Gold Online is by the creatively brilliant minds at Snail Games who brought us Age of Wushu, and carries one of the more interesting monetization models of recent titles. It is difficult to understand, and I am not entirely sure that I have explained it properly, but the game has no cash shop or subscription, but instead monetizes drops in some fashion.

So far all we have seen is this concept in theory, and it could go either way in terms of its reception. Assuming we ever get it.

NCSoft Q1 2013 Finances


ncsoftq412

(I apologize for the outdated screenshot. I will update with a graph once I’m in front of a real computer.)

NCSoft has released their first quarterly report for 2013, and I’m sure we are all wondering how Guild Wars 2 will perform following the initial rush, so let’s dive in. Sales remained strong in 2013 thanks to Guild Wars 2, Aion, and Lineage. Profit is understandably down since last quarter’s launch of Guild Wars 2, however NCSoft’s year over year figures are amazing: 31% higher sales, 348% increased profits, 256% pre-tax income, and 322% net income over Q1 2012.

Lineage 1 continues to be NCSoft’s big seller, consisting of 38% of the total game sales in Q1, with Guild Wars 2 at 21% and Aion at 16%. Aion and Lineage saw an increase in sales quarter over quarter while Lineage II, Guild Wars, and Blade & Soul saw a mild to heavy loss. NCSoft as a parent company has thankfully recovered from being in the red last quarter for pre-tax income and net income.

Korea remains NCSoft’s largest market at 64%, with North America and Europe dropping by about half to 13% and 8% respectively, Japan’s 7% percentage share remained the same even though sales dropped. Sales in Taiwan increased slightly, remaining at 1%. Royalties dropped about one third in total, remaining at the 6% percentage value from the last quarter.

As usual, Guild Wars is bundled in with the “other” and is not represented by its own category. For legal reasons, I must remind you that these results are un-audited and may be subject to change during the auditing process.

NCSoft Q4 2012 Records Historical High Quarterly Revenue


ncsoftq412
Click me for a bigger picture.

Talk about springing back. Strong sales in Lineage, Guild Wars 2, Blade & Soul, as well as mobile games, NCSoft has recorded historical high quarterly revenues for the fourth quarter of 2012. In the latest report, NCSoft marked a 56% increase in quarterly sales, a 208% increase in quarterly operating profit, 110% increase in pre-tax income, as well as a 116% quarterly increase in net income. The fourth quarter saw moderate to high increases in sales for Lineage, Lineage II, with the sales from Guild Wars 2 nearly tripling during the same period. Aion, as well as NCsoft’s latest title, Blade & Soul, saw marginal decreases over the same time period. Lineage II managed to reverse, at least for this quarter, a downward trend in sales that began in Q4 2011 while the original Lineage continues on an unpredictable, yet averaging upward, trend in sales despite its age.

Guild Wars 2 has already proven itself as NCSoft’s most successful product to date, breaking the record set by Aion during its peak sales by a long shot. NCsoft’s parent-company reports are, sadly, not as inspiring. While sales went up 15% quarterly, quarterly operating profit went down 1% with pre-tax income and net income both falling hard and ending up in the red for Q4.

And to wrap this up, we’ll look at everyone’s favorite part of NCSoft’s quarterly reports: Demographics. As expected from the launch of Guild Wars 2 and Blade & Soul, sales in Korea shot up with North America and Europe also taking a dramatic shift upward. Sales in Japan and Taiwan mostly remained the same while sales from royalties were boosted slightly.

NCSoft 3rd Quarter Finances: Significant Growth From New Products


The folks at Arenanet and Team Bloodlust must be breaking open the champagne today, as NCSoft’s financial statements for the third quarter of 2012 reveal that Guild Wars 2 and Blade & Soul aren’t just bringing home the bacon, they are weaving it and frying it to perfection. Guild Wars 2 launched strong in the United States and Europe, while Blade & Soul ripped up the carpeting in Korea. Both games contributed to a massive 50% year over year gain in profits for NCSoft, pulling the developer up from its operating loss from last quarter that saw heavy corporate restructuring and the cancellation of City of Heroes. Both titles should receive a bump in revenue, as Guild Wars 2’s sales do not include Asia, and Blade & Soul has not launched in the West.

On the other hand, every rose has its thorn. As you have likely noticed, both Guild Wars and City of Heroes are no longer listed. Aion continued its free fall in sales while Lineage II continues its considerably slower downturn. The bump that Lineage received in the second quarter is clearly over and done with, as sales fell to below the fourth quarter sales trough in 2011.

NCSoft Q2 2012: Profits Down, Revenue Up


NCSoft has released its finances for the second quarter of 2012, and considering that the major MMO news sites suddenly care enough to report on it, I can only assume that there is some drama to be had. Compared to last quarter, revenues are up thanks to solid Lineage sales and royalties, however NCSoft is in the red on operating profit and net income due to what the company refers to as “one-off labor costs.” Here are the bullet points of important details to explain why NCSoft’s profits sunk so low:

  • Lineage sales were strong Korea, however Aion sales tanked due to “scaled back in-game item sales.”
  • Labor costs surged 27% this past quarter due to severance-pay.
  • Royalty expenses increased 35%
  • Marketing expenses were up 112% over last quarter due to Blade & Soul
  • D&A increased 28%
  • NCSoft’s acquisition of Ntreev also ended up being a major cost.

While sales in Korea and Japan held strong, sales in North America continued a slight decline over last quarter. Europe has been hit the hardest, with sales decreasing to virtually nothing (less than 1% of sales for the quarter).

The launch of Guild Wars 2 is expected to make up for any losses incurred this quarter.

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.