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Guild Wars 2: NCSoft Reports Healthy Earnings

SBFordSBFord Associate Editor - News ManagerThe Land of AZPosts: 16,643MMORPG.COM Staff Uncommon

According to the NCSoft earnings report, the company experienced healthy earnings during the fourth quarter of 2012. Barring losses by Aion and Lineage II, the company maintained an 'in the black' report due to strong sales of Lineage, Guild Wars 2, and Blade & Soul.

Check out the earnings report here.

Source: Massively.com

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Associate Editor: MMORPG.com
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Comments

  • Dreamo84Dreamo84 Niagara Falls, NYPosts: 3,437Member Uncommon
    Uh oh

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  • ichihaifuichihaifu nullPosts: 259Member Uncommon
    "how unexpected" "GW2 is profitable after all, I wonder why is that"
  • RefMinorRefMinor MyTownPosts: 3,452Member
    Originally posted by SBFord

    According to the NCSoft earnings report, the company experienced healthy earnings during the fourth quarter of 2012. Barring losses by Aion and Lineage II, the company maintained an 'in the red' report due to strong sales of Lineage, Guild Wars 2, and Blade & Soul.

    Check out the earnings report here.

    Source: Massively.com

     

    Do you realise that "in the red" indicates losses and is generally considered a bad thing. That is why massively ended their article with this statement "NCsoft's net income was in the red for the quarter and its stock has slid since September, losing half of its value in the process."

  • AsamofAsamof La Canada, CAPosts: 738Member Uncommon
    amazing how many people still play lineage 1
  • JakdstripperJakdstripper logan lake, BCPosts: 2,126Member Uncommon
    how the hell does Korea (assuming south Korea), a nation of 50 mil people, beat Europe + N America's in sales? :O....last i checked Koreans' are not rich....how the heck do they spend that kind of money on mmos? what does the average Korean family do once they get a paycheck ? "buy food, pimp out my GW2 character, and then pay rent if there is anything left..."?
     
     
     
  • VhalnVhaln Chicago, ILPosts: 3,159Member
    Originally posted by RefMinor
    Originally posted by SBFord

    According to the NCSoft earnings report, the company experienced healthy earnings during the fourth quarter of 2012. Barring losses by Aion and Lineage II, the company maintained an 'in the red' report due to strong sales of Lineage, Guild Wars 2, and Blade & Soul.

    Check out the earnings report here.

    Source: Massively.com 

    Do you realise that "in the red" indicates losses and is generally considered a bad thing. That is why massively ended their article with this statement "NCsoft's net income was in the red for the quarter and its stock has slid since September, losing half of its value in the process."

     

    I'd assumed that was a typo, and that she'd meant "in the black" but now, I'm confused.  Why would NCSoft be in the red?  Would that be in spite of those strong sales, or were those sales not strong enough, or what?

    When I want a single-player story, I'll play a single-player game. When I play an MMO, I want a massively multiplayer world.

  • revcasyrevcasy Oneonta, ALPosts: 9Member
    Originally posted by Vhaln
    Originally posted by RefMinor
    Originally posted by SBFord

    According to the NCSoft earnings report, the company experienced healthy earnings during the fourth quarter of 2012. Barring losses by Aion and Lineage II, the company maintained an 'in the red' report due to strong sales of Lineage, Guild Wars 2, and Blade & Soul.

    Check out the earnings report here.

    Source: Massively.com 

    Do you realise that "in the red" indicates losses and is generally considered a bad thing. That is why massively ended their article with this statement "NCsoft's net income was in the red for the quarter and its stock has slid since September, losing half of its value in the process."

     

    I'd assumed that was a typo, and that she'd meant "in the black" but now, I'm confused.  Why would NCSoft be in the red?  Would that be in spite of those strong sales, or were those sales not strong enough, or what?

    Because they spent more money than they earned. Building infrastructure to support two growing MMO's is expensive, plus the advertising blitz for GW2, plus who knows what else.

  • EtherignisEtherignis philadelphia, PAPosts: 246Member
    Wow i thought they were doing good. NcSoft last hope will be BnS that will probably bail them out.
  • AsamofAsamof La Canada, CAPosts: 738Member Uncommon
    Originally posted by Jakdstripper
    how the hell does Korea (assuming south Korea), a nation of 50 mil people, beat Europe + N America's in sales? :O....last i checked Koreans' are not rich....how the heck do they spend that kind of money on mmos? what does the average Korean family do once they get a paycheck ? "buy food, pimp out my GW2 character, and then pay rent if there is anything left..."?
     
     
     

    are you serious dude?

  • PivotelitePivotelite Hamilton, ONPosts: 2,167Member
    Originally posted by Jakdstripper
    how the hell does Korea (assuming south Korea), a nation of 50 mil people, beat Europe + N America's in sales? :O....last i checked Koreans' are not rich....how the heck do they spend that kind of money on mmos? what does the average Korean family do once they get a paycheck ? "buy food, pimp out my GW2 character, and then pay rent if there is anything left..."?

     Ignorance at it's finest, Korea used to be a poor nation but they boomed the last few decades and have become very wealthy and online gaming is huge in Korea, definitely bigger than any other country. Whereas here it's still taboo and nerdy to play online games, it's basically the norm/cool there. Internet cafes are all over south korea basically allowing people to have lan parties with friends while out for a coffee, gaming is huge and Korea is starting to become the powerhouse for developing games too.

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  • ice-vortexice-vortex Xenia, OHPosts: 951Member
    Originally posted by Etherignis
    Wow i thought they were doing good. NcSoft last hope will be BnS that will probably bail them out.

    If you look at their report, there's nothing really to bail out. There is a signficant amount of increase in spending from Q3 to Q4. You have to spend money to make money. Their overall revenue is trending upwards, hence the titles of the thread and the Massively article.

  • TalonsinTalonsin Posts: 1,478Member Uncommon
    Originally posted by Jakdstripper
    how the hell does Korea (assuming south Korea), a nation of 50 mil people, beat Europe + N America's in sales? :O....last i checked Koreans' are not rich....how the heck do they spend that kind of money on mmos? what does the average Korean family do once they get a paycheck ? "buy food, pimp out my GW2 character, and then pay rent if there is anything left..."?
     
     

    In the US, our teens waste money on A&B clothes, sports jerseys and smartphones.  In Korea, gaming is the biggest sport and the in-thing.

  • dimnikardimnikar ZanistanvillePosts: 271Member

    Unless GW2 box sales keep up the pace OR cash shop sales go up even further, they might not get a return on their investement.

     

    I'm guessing their exceedingly high expenses were due to producing / marketing GW2. They might not be.

  • sea.shellsea.shell SelfossPosts: 63Member

    Go Lineage GO! ?(????)?


    Oh wait, wrong party :)

    Playing: EVE Online
    Wants to play: ArcheAge, Lineage Eternal: Twilight Resistance / Star Citizen / FFXIV AAR / Neverwinter

    Used to play for 5+ years: Lineage 2, Lord of the Rings Online and Ragnarok Online

    Utter disappointing MMO experience for 1 - 3 Months:
    WAR / AoC / SWTOR / RIFT / AION / STO / TSW / GW2 / GW / Vanguard / Planetside2

  • ice-vortexice-vortex Xenia, OHPosts: 951Member
    Originally posted by Talonsin
    Originally posted by Jakdstripper
    how the hell does Korea (assuming south Korea), a nation of 50 mil people, beat Europe + N America's in sales? :O....last i checked Koreans' are not rich....how the heck do they spend that kind of money on mmos? what does the average Korean family do once they get a paycheck ? "buy food, pimp out my GW2 character, and then pay rent if there is anything left..."?
     
     

    In the US, our teens waste money on A&B clothes, sports jerseys and smartphones.  In Korea, gaming is the biggest sport and the in-thing.

    The easier explanation is that NCsoft is a Korean company and their portfolio of games primarily leans on the Korean market. The Guild Wars series is their primary foray into the western market.  Right now Guild Wars 2 alone makes up 45% of their game sales which is what the their European and North American sales add up to.

  • TorvalTorval Oregon CountryPosts: 7,221Member Uncommon
    Originally posted by Asamof
    amazing how many people still play lineage 1

    It is.  The game really was that damn good in my opinion.  The old Lineage is more popular than most of the older western games combined.  It's still estimated to have around 900 - 1M+ subscribers (that was a true subscription model too).

    I think NC might be hurting because BnS seems to be underperforming and they had been banking on that.  Aion lost a lot of users and BnS isn't gaining more than Aion and L2 are bleeding.  If you're Korean and can play BnS, Tera, or Lineage, among other popular Asian games, why would you stick to Aion and L2 doesn't have the same staying power as Lin1.

    What I wonder is, if NC were to be bought out entirely (they're not going to just fail), does ANet have their own buyout option?  I've heard rumors, but never confirmed, that ANet has some loopholes and options that let them control their own destiny if it came to something like that.

  • PivotelitePivotelite Hamilton, ONPosts: 2,167Member

    " NCsoft's net income was in the red for the quarter and its stock has slid since September, losing half of its value in the process."

     

    Why did MMORPG leave that out from the massively article?

     

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  • Gaia_HunterGaia_Hunter BristolPosts: 2,829Member Uncommon

    So

    around $40M in the 3Q12 + around $110M in 4Q12 = $150M

    for GW2.

    At an average of $30 a box that is 5 millions, so it seems a nice stream of revenue from gems.

    Currently playing: GW2
    Going cardboard starter kit: Ticket to ride, Pandemic, Carcassonne, Dominion, 7 Wonders

  • TorvalTorval Oregon CountryPosts: 7,221Member Uncommon
    Originally posted by Pivotelite

    " NCsoft's net income was in the red for the quarter and [u]its stock has slid since September, losing half of its value in the process[/u]."

    Why did MMORPG leave that out from the massively article?

    One has to wonder what the hell is going on with NCSoft right now.  Both Lineage and Guild Wars 2 are extremely profitible.  BnS looks like it could be underperforming, but still very profitible.  Aion and L2 are shrinking, but is that really the cause?  I have a hard time believing it's GW2 marketing.  That would seemingly be idiotic to go that far in the red for marketing or to let marketing account for that big of a revenue hit.  There has to be something else going on.

  • dimnikardimnikar ZanistanvillePosts: 271Member

    They could've made a bad investment or bought out a company with debts, or perhaps they're just ran by a corrupt board of directors bleeding it dry.

    WIth the money they're raking in I also find it hard to believe losses are due to operating costs / marketing alone. They should be smart enough to make those calculations right.

  • kitaradkitarad RomePosts: 1,745Member Uncommon
    That is in Korean Won . 1000 over Korean won is 1 US dollar.

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  • OzmodanOzmodan Hilliard, OHPosts: 7,191Member Uncommon
    Huh?  A profit from Linage, thought they took all those servers off line?  Did you get it backward?
  • bcbullybcbully Westland, MIPosts: 8,281Member Uncommon

    http://global.ncsoft.com/global/ir/earnings.aspx

     

    Read for yourself. As expected a nice portion of box sales were held over from the 3rd qt. Even with that it looks like they lost quite a bit. Stock went down another 5% today too.

  • IcewhiteIcewhite Elmhurst, ILPosts: 6,403Member

    Oh boy, a quarterly. You guys know what this means?

    What Does It All Mean Doom Forecasting™, with Bunny, our happy fluffy weather girl, tonight on Action Seven News.

    Self-pity imprisons us in the walls of our own self-absorption. The whole world shrinks down to the size of our problem, and the more we dwell on it, the smaller we are and the larger the problem seems to grow.

  • KuppaKuppa Boulder, COPosts: 3,292Member Uncommon
    Originally posted by RefMinor
    Originally posted by SBFord

    According to the NCSoft earnings report, the company experienced healthy earnings during the fourth quarter of 2012. Barring losses by Aion and Lineage II, the company maintained an 'in the red' report due to strong sales of Lineage, Guild Wars 2, and Blade & Soul.

    Check out the earnings report here.

    Source: Massively.com

     

    Do you realise that "in the red" indicates losses and is generally considered a bad thing. That is why massively ended their article with this statement "NCsoft's net income was in the red for the quarter and its stock has slid since September, losing half of its value in the process."

     

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