Square Enix Posts Fiscal Year Results


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Square Enix has posted their financial results for the fiscal 2014 year ending March 31, 2014. In addition to a nearly five percent rise in net sales over the previous year, Square Enix also reports a 10.5 billion yen operating income ($100 million, approximately) compared to last year’s 6 billion yen loss. The boost in operating income is attributed to favorable sales from the Final Fantasy X/X-2 Remaster, Tomb Raider: Definitive Edition, as well as continued success from Final Fantasy XIV: A Realm Reborn.

(Source: Polygon)

Star Vault Sees Q1 Bump In 2014


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Star Vault has released their Q1 2014 finances and the results are actually looking good. Net sales broke one hundred thousand for the quarter, up heavily from the previous quarter’s report of eighty one thousand. Net profit remains in the red but increased severely over the previous two quarters, from one hundred fifty thousand in the red down to eighty three thousand. If Star Vault can keep this momentum going, the company will be in the black by the end of the third quarter.

As usual, Henrik Nystrom made his quarterly address.

During the first quarter of 2014 marked by a continued positive trend in increased player activity in Mortal Online. Meanwhile, we have the beginning of 2014, working with a major focus for the planned release on STEAM, the world’s largest online distributor of PC games. Mortal Online will then be posted on a global playlist daily visited by between 4-6 million players worldwide. In February, the game engine Unreal Engine updated, resulting in a large number of improvements in place. Briefly, the above, including both graphical quality and performance improved, which facilitates the creation of a new continent in the game, so we can handle a larger number of players.

With the new continent will face in Mortal Online will be doubled and the new Territory Control will enable us to offer unique features. These features will be released in stages before release. In our industry it is known that all releases are unpredictable and I think it’s important to be clear that although we will encounter problems in the same way as the major players, but we’re doing what we can to be prepared. One of the major challenges in the industry is of course to bring in new players, but also to maintain the existing players by offering a consistently high quality. The competition is tough and you have to deliver. We will just as before to continue to be very honest with our player and also allow them to participate and judge when we have what it takes for a successful release on STEAM. 

As previously announced, of course, both the content and quality priority, which means that we update the plan we had from the beginning, to gain more time for testing and bug fixing before release. In this overall development plan to release the work has been divided into six blocks; Engine update (completed and is live), development of the Territory control, test and release of Territory Control continent’s development, test and release of the continents, and the testing and release of Steam API (Application Programming Interface). Each block has a lead time of about one month, while parts of the work of the various blocks is done in parallel. 

We have since the beginning of the year even able to announce a new functionality in the form of that Mortal Online has built-in support for Oculus Rift. Oculus Rift can be described as the next generation of virtual reality headsets and developed by the company Oculus VR. In March 2014 it was announced that Facebook, Inc. decided to buy the project for about two billion dollars. By playing Mortal Online with Oculus Rift given increased playing experience then, so to speak “comes into play.” Turn the head of the unit really does play the character in the game too. One sees also the depth and 3D by Oculus, which can provide some benefits in Mortal Online because you always play the game in first person view. When Oculus Rift released, we think players will be interested to try the dedicated first-person games such as Mortal Online, which is the first mmo game that is exclusively dedicated first person only, and therefore lends itself very well to play with Oculus rift. 

Henrik Nystrom 
CEO, Star Vault AB

Editor’s note: Figures are provided by the Aktietorget stock exchange. All figures are presented in US Dollars using conversions provided by Citibank NA and reflect trading values on the day of reporting. Henrik Nystrom’s statements are automatically translated by Google and may contain various spelling or grammatical errors. 

Free to Play Drew $2.8 Billion In 2013


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Super Data Research is a group that provides market intelligence in the online, digital, and mobile games industry. The numbers for 2013 have been released, detailing the estimated sales for mobile, free to play, and subscription based titles. Free to play was dominated by Crossfire and League of Legends, bringing in a combination of nearly $1.6 billion.

Social games dropped 21% over last year, with the US hitting an average of $50 per paying user spent. Free to play games brought in $2.8 billion, an increase in total revenue despite a decrease in monthly active user count. Pay to play, on the other hand, brought in $1.1 billion in 2013, down nearly 20% from 2012.

Unsurprisingly, the top free to play earnings chart was dominated by the usual titles: World of Tanks, League of Legends, Lineage, World of Warcraft, The Old Republic, and Crossfire.

(Source: Super Data Research)

NCSoft Operating Profit Down 51% Over Last Quarter


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NCSoft has released their financial statements for the third quarter of 2013 and the results are not so great. While sales dropped only 12% over last quarter, operating profit dipped 51% over the same period and pre-tax income similarly dropped 47%. Net income stands at a 23% drop over the previous quarter. In the report, NCSoft links the loss of profit due to the “lion’s share of Lineage in-game item sales in 3Q being carried over to 4Q.”

On the game side, Lineage saw a nearly 27% drop in sales over the last quarter, while Blade & Soul enjoyed 40% rise in sales attributed to the “Baek-chung” content pack recently released for the game. Sales for Lineage 2, Aion, and Guild Wars 2 all dropped over the previous quarter.

According to NCSoft, while labor costs remained flat, royalty and marketing expenses increased due to a license contract with the Baseball Players Association and the Wildstar marketing campaigns respectively. Other expenses included the relocation of the NCSoft headquarters, restoration of the Seoul offices, and office supplies.

(Source: NCSoft Corporate)

State of Decay Sells 1 Million Copies


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Undead Labs is reporting that State of Decay, available for Xbox Live Arcade and Steam Early Access, has sold over one million copies. Undead Labs is planning on developing an MMO set in the same universe, tentatively titled Class4. State of Decay was formerly known as Class3.

“Your encouragement drives us to keep working and keep improving. You got us here with your energy, your feedback, and your telling your friends about us. We thank you from the bottom of our hearts and brains.”

(Source: Gamesindustry.biz)

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's Sales Per Region, Per Quarter, Mapped


Click on me to enlarge. I look much better zoomed in.

I’ve mapped out the sales per region over the entirety of NCSoft’s financial statements, dating back to the first quarter of 2005. You’ll see that Korea makes up more of NCsoft’s sales generally than every other region combined, and occasionally even doubled. Sales in North America and Europe peaked in 2009 and have been on a steady decline since, with European sales you will see becoming virtually nothing in Q2 2012 (less than 1% of total sales for the quarter). Japan has its ups and downs but is on a general incline, and Taiwan has been relatively stable since its tracking began in 2007. Royalty sales are on an incline, with a few stumbles along the way.

NCSoft may be banking on Guild Wars 2 to save its sales in North America and Europe. Guild Wars sold millions of copies and did quite well in the West. Shutting down City of Heroes will cut NCSoft’s income by a small amount, small beans compared to the sales of Guild Wars 2.

Just a few notes:

  • Units are KRW in Mn.
  • Up until Q3 2008, royalties were included in Korean sales.
  • Taiwan was not listed until Q1 2007.
  • Up until around 2006, NCSoft changed its label “US” to “North America.” For the sake of continuity, N. America has been used for the entire list.

NCSoft’s Sales Per Region, Per Quarter, Mapped


Click on me to enlarge. I look much better zoomed in.

I’ve mapped out the sales per region over the entirety of NCSoft’s financial statements, dating back to the first quarter of 2005. You’ll see that Korea makes up more of NCsoft’s sales generally than every other region combined, and occasionally even doubled. Sales in North America and Europe peaked in 2009 and have been on a steady decline since, with European sales you will see becoming virtually nothing in Q2 2012 (less than 1% of total sales for the quarter). Japan has its ups and downs but is on a general incline, and Taiwan has been relatively stable since its tracking began in 2007. Royalty sales are on an incline, with a few stumbles along the way.

NCSoft may be banking on Guild Wars 2 to save its sales in North America and Europe. Guild Wars sold millions of copies and did quite well in the West. Shutting down City of Heroes will cut NCSoft’s income by a small amount, small beans compared to the sales of Guild Wars 2.

Just a few notes:

  • Units are KRW in Mn.
  • Up until Q3 2008, royalties were included in Korean sales.
  • Taiwan was not listed until Q1 2007.
  • Up until around 2006, NCSoft changed its label “US” to “North America.” For the sake of continuity, N. America has been used for the entire list.

Falling Out Returns Again!


Not that this will prevent any hate-mail, but I’ve included a nice chart on NCSoft’s sales for reference. Falling Out releases a new edition every Monday.

Steam Summer Sales Assault The Wallet


It’s sale time, so get out your wallet and replace the next month’s meals with Ramen because this year is looking fantastic. Right now there aren’t many deals in the MMO realm to speak of, but that doesn’t mean we can’t get in the fun! Check out the current sales below. Remember, as always, prices are in USD and may vary by region. MMO Fallout does not guarantee that items are not region locked, so please read carefully before making your purchase.