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NCsoft sales up 2%, profits down 6%

By Phil Elliott

Fri 11 Feb 2011 8:53am GMT / 3:53am EST / 12:53am PST

MMO giant marks new revenue record for veteran title Lineage


NCsoft is a leading developer and publisher of online games.

A gaming powerhouse with a global reach,...

NCsoft has reported its fiscal 2010 results, with sales and operating profit both up, but net income down.

Total revenue came in at ₩650 billion ($576 million), up 2 per cent on the previous year, thanks in part to a new sales record for the 12 year-old Lineage game, with its highest ever annual sales of ₩181 billion ($160 million).

Meanwhile operating profit was up 4 per cent at ₩243 billion ($215 million), although net income fell by 6 per cent year-on-year to ₩174 billion ($154 million).

In total the company's lifetime sales for its three biggest titles - Lineage, Lineage 2 and Aion - have now reached ₩3 trillion ($2.7 billion), with the most recent of those three, Aion, now recording consecutive growth for the last three years.

"These results mark another successful year for NCsoft," said MD of EU Publishing, Veronique Lallier. "We've not only maintained steady growth but also broken sales records with our veteran MMO title Lineage, which celebrated its twelfth anniversary last year. We have accomplished this through the strength of our content and the vigour of our community.

"NCsoft, like most MMOs, provide a service, rather than just sell a box. Our success comes from the quality of that service and our ability to communicate with our players on a daily basis. Traditional games publishing models need to adapt and reflect this.

"It's not the end of traditional games publishing models, but we're witnessing a monumental change from those of old," she added.

By region, Korea was unsurprisingly the largest market by revenue, at ₩417 billion ($370 million), followed by Japan on ₩79 billion ($70 million).

North America was next on ₩49 billion ($43.4 million), followed by Europe with ₩34 billion ($30.1 million) and Taiwan on ₩22 billion ($19.5 million).

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Adam Yaure Studying MSc Games Programming, University of Hull

18 0 0.0
wow, the Korea market by revenue is more than double of the next 4 largest market...

Posted:5 years ago


Eddie In Project Manager, Ndoors

15 0 0.0
@Adam: a huge reason behind this is the available of a secondary market and the presence of a legal framework that recognizes virtual assets as being property of the user who worked for them. Lineage is a slot machine where you grind through mobs hoping to hit the jackpot by getting the ultra super rare drop. There are a LOT of people in Lineage who can't/won't leave the game because it would mean turning down a few hundred/thousand dollars of item sales per month. Another argument for Lineage is that it caters to middle-aged gamers in Korea who can't be bothered by high PC requirements or complex game systems - you click what you want to kill and pick up what they loot... that's about the extent of Lineage IMO.

Posted:5 years ago


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