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Guild Wars 2: NCSoft Reports Healthy Earnings

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Comments

  • SovrathSovrath Boston Area, MAPosts: 18,462Member Uncommon
    Originally posted by Roxtarr
    Originally posted by Sovrath

    Barring losses by Aion and Lineage II

    Well, maybe "totally free" isn't the way to go.

    I think to be successful with a "totally" free game, you need a game that is clearly better than the competition since there is no sub to hold you.  If you pay $15 then you need to stick with it since you already spent your money.  

    Sadly, some studios think that the sub is the barrier when maybe it's actully the game that's the problem.  I have issues with Aion than weren't solved by removing the sub.  It didn't suddenly make the game better.  

    Bingo we have a winner.

  • OzmodanOzmodan Hilliard, OHPosts: 7,191Member Uncommon

    NCSoft is on a downward spiral.  Sure GW2 brought in a lot of money this quarter, but that will decline drastically over the next year.  Aion is dead weight, and Lineage is only making money in the east.

    If I was an owner of their stock, I would sell in a second.  I don't see anything coming down the line that will show much profit.

    Turbine made Lotro f2p, but they kept the sub.  People who like the game still sub, hence they are still profitable.

  • PrenhoPrenho AracajuPosts: 298Member
    Originally posted by Ozmodan

    NCSoft is on a downward spiral.  Sure GW2 brought in a lot of money this quarter, but that will decline drastically over the next year.  Aion is dead weight, and Lineage is only making money in the east.

    If I was an owner of their stock, I would sell in a second.  I don't see anything coming down the line that will show much profit.

    Turbine made Lotro f2p, but they kept the sub.  People who like the game still sub, hence they are still profitable.

    You are just taking into account this quarter alone. Lets put all entire 2012:

     

    Lineage 1 - 210 billion won

    GW2 - 164 billion won

    Aion - 145 billion won

    B&S -  67 billion won(only available in korea so far)

    Lineage 2 - 64 billion won

    Others - 36 billion won

    off course,  excluding royalties.

     

     

  • ThillianThillian BratislavaPosts: 3,143Member Uncommon

    http://finance.yahoo.com/q/bc?s=036570.KS+Basic+Chart

    They're doing fantastic, maybe that's why their stock dropped by about 60% since the release of GW2

    REALITY CHECK

  • botrytisbotrytis In Flux, MIPosts: 2,567Member
    Originally posted by Ozmodan

    NCSoft is on a downward spiral.  Sure GW2 brought in a lot of money this quarter, but that will decline drastically over the next year.  Aion is dead weight, and Lineage is only making money in the east.

    If I was an owner of their stock, I would sell in a second.  I don't see anything coming down the line that will show much profit.

    Turbine made Lotro f2p, but they kept the sub.  People who like the game still sub, hence they are still profitable.

    But it is an Eastern company. NCSoft stock is not traded in the west. You don't own stock and the Koreans, who do own it, are in it for the long haul not for short term gains.

     

    They have Blade and Soul which is doing well there and possibly a few others so don't count this company out just because you want them to die.

    image

    "In 50 years, when I talk to my grandchildren about these days, I'll make sure to mention what an accomplished MMO player I was. They are going to be so proud ..."
    by Naqaj - 7/17/2013 MMORPG.com forum

  • Gaia_HunterGaia_Hunter BristolPosts: 2,829Member Uncommon
    Originally posted by coretex666
    Originally posted by Gaia_Hunter
    Originally posted by coretex666

    Healthy earnings.

    As a Big Four auditor, I move a little further in the report to P&L, perform analytical review, find out that the net income decreased by 61%.

    You should take a look at COS as well. Sales on their own dont provide you with enough information to make a conclusion. Especially not the one that they are healthy.

    Luckily we are here to discuss games not finance, right.

    Net income increased 31%. The 61% decrease wasthe parent company only.

    Their gross profit margin was 20% in 2012, with 20% in 3Q12 and 40% 4Q12.

    I guess you should have moved a little bit further.

     In the consolidated financial statements yes.

    However, the declining parent company should not be ignored completely due to its significance in the consolidated FS.

    Saying that the earnings are healthy in spite of the fact that revenues of parent company which represent 63% of the consolidated revenues decrease by 5% while it`s cost of sales which represent 55% of consolidated COS increase by 30% is quite bold, dont you think?

    If the parent company keeps declining, I would not be so certain that the relatively small subsidies can ensure the consolidated result to be profit in the future.

    Not saying it will inevitably happen. In fact, if I was to guess, I would probably say that the company (group) will do fine in the future, but I would not be so certain to put my money on that.

    Since the side I care is GW&GW2, that is healthy. :)

    Which should mean Arenanet has a ltittle more muscle in negotiations with NCSoft.

     

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

  • DoogiehowserDoogiehowser ParisPosts: 1,873Member
    Originally posted by Asamof
    amazing how many people still play lineage 1

    That came is like a crack. Hard to break the habit once you are in too deep lol

    "The problem is that the hardcore folks always want the same thing: 'We want exactly what you gave us before, but it has to be completely different.'
    -Jesse Schell

    "Online gamers are the most ludicrously entitled beings since Caligula made his horse a senator, and at least the horse never said anything stupid."
    -Luke McKinney

    image

  • coretex666coretex666 PraguePosts: 1,928Member Uncommon
    Originally posted by Gaia_Hunter
    Originally posted by coretex666
    Originally posted by Gaia_Hunter
    Originally posted by coretex666

    Healthy earnings.

    As a Big Four auditor, I move a little further in the report to P&L, perform analytical review, find out that the net income decreased by 61%.

    You should take a look at COS as well. Sales on their own dont provide you with enough information to make a conclusion. Especially not the one that they are healthy.

    Luckily we are here to discuss games not finance, right.

    Net income increased 31%. The 61% decrease wasthe parent company only.

    Their gross profit margin was 20% in 2012, with 20% in 3Q12 and 40% 4Q12.

    I guess you should have moved a little bit further.

     In the consolidated financial statements yes.

    However, the declining parent company should not be ignored completely due to its significance in the consolidated FS.

    Saying that the earnings are healthy in spite of the fact that revenues of parent company which represent 63% of the consolidated revenues decrease by 5% while it`s cost of sales which represent 55% of consolidated COS increase by 30% is quite bold, dont you think?

    If the parent company keeps declining, I would not be so certain that the relatively small subsidies can ensure the consolidated result to be profit in the future.

    Not saying it will inevitably happen. In fact, if I was to guess, I would probably say that the company (group) will do fine in the future, but I would not be so certain to put my money on that.

    Since the side I care is GW&GW2, that is healthy. :)

    Which should mean Arenanet has a ltittle more muscle in negotiations with NCSoft.

     

    Alright :)

    Waiting for L2 EU Classic

  • VesaviusVesavius BristolPosts: 7,645Member Uncommon
    Originally posted by coretex666
    Originally posted by Gaia_Hunter

    Which should mean Arenanet has a ltittle more muscle in negotiations with NCSoft.

     

    ...or it could mean that NC Soft rape the hell out of GW2's cash shop in order to make up some figures....

  • Gaia_HunterGaia_Hunter BristolPosts: 2,829Member Uncommon
    Originally posted by Vesavius
    Originally posted by coretex666
    Originally posted by Gaia_Hunter

    Which should mean Arenanet has a ltittle more muscle in negotiations with NCSoft.

     

    ...or it could mean that NC Soft rape the hell out of GW2's cash shop in order to make up some figures....

    There are a ton of complains about the cash shop being a bit bland.

    If Arenanet wants, they can add a ton of cosmetic stuff in there and even sell things that are at the moment hidden under RNG like the permanent trade contract.

    With GW2 already paying for itself (sorry but there is no way GW2 budget was over $75M and it already brought back $150M) there will be less urgency to get the money back.

    Especially with an exp pack this year (that will cost much less - 1 year development or so) that will probably generate a much higher profit even it brings less absolute revenue.

    NCSoft can rape the Asian market with RNGs. :)

     

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

  • Eir_SEir_S Argyle, NYPosts: 4,623Member

    I don't care about NCSoft so much as I care about ANet.  And ANet is one of their best companies and they know it.  Good people there.. can't say the same about NCSoft themselves.

    I've said it before, ANet deserves the success they're experiencing.

  • VesaviusVesavius BristolPosts: 7,645Member Uncommon
    Originally posted by Gaia_Hunter
    Originally posted by Vesavius
    Originally posted by coretex666
    Originally posted by Gaia_Hunter

    Which should mean Arenanet has a ltittle more muscle in negotiations with NCSoft.

     

    ...or it could mean that NC Soft rape the hell out of GW2's cash shop in order to make up some figures....

    There are a ton of complains about the cash shop being a bit bland.

    If Arenanet wants, they can add a ton of cosmetic stuff in there and even sell things that are at the moment hidden under RNG like the permanent trade contract.

    With GW2 already paying for itself (sorry but there is no way GW2 budget was over $75M and it already brought back $150M) there will be less urgency to get the money back.

    Especially with an exp pack this year (that will cost much less - 1 year development or so) that will probably generate a much higher profit even it brings less absolute revenue.

    NCSoft can rape the Asian market with RNGs. :)

     

    I hope that's the case for the game... though we have seen strong use of RNG in the cash shop here already. Let's hope it wasn't *that* successful and encouraging to NCSoft.

    Don't get me wrong, I'm not digging at the game here. I think GW2 deserves it's success fully and I only wish it well. It might not have been a long term game for me personally but it was certainly fun enough for me to play as a solo RPG for a month that I didn't feel in any way ripped off.

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