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NCsoft Q2 2014 Earnings report is in... not pretty...

24

Comments

  • BladestromBladestrom Member UncommonPosts: 5,001
    Originally posted by caetftl
    Originally posted by Vorch
    Originally posted by caetftl

    Yes those are sales by game... not box sales by game... microtransactions are included in the revenue reported for gw2 sales... You really gotta look again and understand accounting nomenclature...

    You include sales, box sales, and microtransactions to fit whatever story you are telling. So you win. i'm the fanboi I guess :/ Back to playing enjoying clearly dying MMO.

     

    I look forward to your timely report on GW2's failings in 3 months.

    No... i include them because they are included in the financial reports... you would be the one trying to misconstrue information to illustrate a narrative that you would find more pleasant. 

     

    A microtransaction sale is considered a sale for gw2... it falls under sales for gw2 in "sales by game" section.  No one is weaving that in for nefarious purposes... that's just how accounting is reported... that's reality... you can either accept it or not...

    Also have fun in gw2... let me know how the pvp is going...

    What is it with the rather amatuar assessments of a financial report - looks like a perfectly healthy report to me for any company.  Was there a profit warning? Has the market reported dismay at these reports? Does this have a direct impact on us as game players? What has this got to do with GW2 as a game?  As a game player we care about 1 thing - is it fun to play.

     

    rpg/mmorg history: Dun Darach>Bloodwych>Bards Tale 1-3>Eye of the beholder > Might and Magic 2,3,5 > FFVII> Baldur's Gate 1, 2 > Planescape Torment >Morrowind > WOW > oblivion > LOTR > Guild Wars (1900hrs elementalist) Vanguard. > GW2(1000 elementalist), Wildstar

    Now playing GW2, AOW 3, ESO, LOTR, Elite D

  • PioneerStewPioneerStew Member Posts: 874
    Originally posted by Bladestrom
    Originally posted by caetftl
    Originally posted by Vorch
    Originally posted by caetftl

    Yes those are sales by game... not box sales by game... microtransactions are included in the revenue reported for gw2 sales... You really gotta look again and understand accounting nomenclature...

    You include sales, box sales, and microtransactions to fit whatever story you are telling. So you win. i'm the fanboi I guess :/ Back to playing enjoying clearly dying MMO.

     

    I look forward to your timely report on GW2's failings in 3 months.

    No... i include them because they are included in the financial reports... you would be the one trying to misconstrue information to illustrate a narrative that you would find more pleasant. 

     

    A microtransaction sale is considered a sale for gw2... it falls under sales for gw2 in "sales by game" section.  No one is weaving that in for nefarious purposes... that's just how accounting is reported... that's reality... you can either accept it or not...

    Also have fun in gw2... let me know how the pvp is going...

    What is it with the rather amatuar assessments of a financial report - looks like a perfectly healthy report to me for any company.  Was there a profit warning? Has the market reported dismay at these reports? Does this have a direct impact on us as game players? What has this got to do with GW2 as a game?  As a game player we care about 1 thing - is it fun to play.

     

    Which is heavily affected by how profitable it is; as this will inform all future decisions pertaining to the game.  

  • BladestromBladestrom Member UncommonPosts: 5,001

    Obviously, that applies to every game.

    From report  'Revenues and profits increased thanks to new launches such as Wildstar in US/EU and Guild Wars 2 in China.'  Since GW2 has already paid for itself, GW2 sales in China (in whatever form) is almost pure profit which is pretty damn fine from the companies perspective, so why exactly has this been translated as 'not pretty'  very strange.

     

    rpg/mmorg history: Dun Darach>Bloodwych>Bards Tale 1-3>Eye of the beholder > Might and Magic 2,3,5 > FFVII> Baldur's Gate 1, 2 > Planescape Torment >Morrowind > WOW > oblivion > LOTR > Guild Wars (1900hrs elementalist) Vanguard. > GW2(1000 elementalist), Wildstar

    Now playing GW2, AOW 3, ESO, LOTR, Elite D

  • PioneerStewPioneerStew Member Posts: 874
    Originally posted by Bladestrom

    Obviously, that applies to every game.

    From report  'Revenues and profits increased thanks to new launches such as Wildstar in US/EU and Guild Wars 2 in China.'  Since GW2 has already paid for itself, GW2 sales in China (in whatever form) is almost pure profit which is pretty damn fine from the companies perspective, so why exactly has this been translated as 'not pretty'  very strange.

     

    I agree.  The WS section of the report makes dire reading, but GW2 seems to be ticking along.  

  • JacobinJacobin Member RarePosts: 1,009
    Originally posted by hardicon

      I think everyone knew from the start this game would not make warcraft numbers or monies, simply because too many mmo gamers are lazy and don't want to be challenged.

    I love this bizarre-o-world logic of blaming the customers for poor sales. You can't go to investors and say sorry I lost your money because the customers don't 'get' the product. Your sales suck because your product sucks and you failed at market research.

    What you call 'challenge' others call boring, been there done that or unfun.  In fact devs are banking on the fact that people actually care about their 'skill status' in a virtual world and thus get addicted and keep giving them money rather than act as rational consumers who measure value for time invested.

  • k61977k61977 Member EpicPosts: 1,503
    Originally posted by caetftl

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

     

    Can anet do anything to generate new interest in the game?  The launch in china didn't seem to go as well as many had claimed (one guy even make a thread on this forum about it selling 3.8million accounts when it was actually 3.8million characters created)

    I just read the entire earnings report and profits are up across the board.  Yeah they had an increase in labor cost that hurt profits but the return on investment still increased by a very acceptable margin.  Let's put it this way there stock holders are not complaining because they made money. 

     

    So I don't know where you got this doom and gloom from as it didn't come from the earnings reports. 

    Units of measure KRW in MN = Korean Won in the millions

    Current exchange rate is 1 KRW = 0.00098 USD

    Sales:                  Q1 = 178,147     Q2 = 213,000

    Operating Profit:  Q1 = 44,520      Q2 = 64,948

    Net Income:          Q1 = 36,539     Q2 = 52,938

     

    So from just glancing at those numbers I would be happy to be an investor for this quarter .

  • caetftlcaetftl Member Posts: 358
    Originally posted by k61977
    Originally posted by caetftl

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

     

    Can anet do anything to generate new interest in the game?  The launch in china didn't seem to go as well as many had claimed (one guy even make a thread on this forum about it selling 3.8million accounts when it was actually 3.8million characters created)

    I just read the entire earnings report and profits are up across the board.  Yeah they had an increase in labor cost that hurt profits but the return on investment still increased by a very acceptable margin.  Let's put it this way there stock holders are not complaining because they made money. 

     

    So I don't know where you got this doom and gloom from as it didn't come from the earnings reports. 

    Units of measure KRW in MN = Korean Won in the millions

    Current exchange rate is 1 KRW = 0.00098 USD

    Sales:                  Q1 = 178,147     Q2 = 213,000

    Operating Profit:  Q1 = 44,520      Q2 = 64,948

    Net Income:          Q1 = 36,539     Q2 = 52,938

     

    So from just glancing at those numbers I would be happy to be an investor for this quarter .

    Unfortunately sales for gw2 are down, and despite release in china of gw2.. royalties don't seem to be soaring...

  • k61977k61977 Member EpicPosts: 1,503
    Originally posted by caetftl
    Originally posted by k61977
    Originally posted by caetftl

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

     

    Can anet do anything to generate new interest in the game?  The launch in china didn't seem to go as well as many had claimed (one guy even make a thread on this forum about it selling 3.8million accounts when it was actually 3.8million characters created)

    I just read the entire earnings report and profits are up across the board.  Yeah they had an increase in labor cost that hurt profits but the return on investment still increased by a very acceptable margin.  Let's put it this way there stock holders are not complaining because they made money. 

     

    So I don't know where you got this doom and gloom from as it didn't come from the earnings reports. 

    Units of measure KRW in MN = Korean Won in the millions

    Current exchange rate is 1 KRW = 0.00098 USD

    Sales:                  Q1 = 178,147     Q2 = 213,000

    Operating Profit:  Q1 = 44,520      Q2 = 64,948

    Net Income:          Q1 = 36,539     Q2 = 52,938

     

    So from just glancing at those numbers I would be happy to be an investor for this quarter .

    Unfortunately sales for gw2 are down, and despite release in china of gw2.. royalties don't seem to be soaring...

    Looking at the consolidated sales break down excluding royalties they lost a little over 10% specifically for guild wars 2.  And this is excluding royalties so for a game that has been out for a couple years these are still good numbers.  The problem with looking at the royalties is that you don't know the breakdown of these.  They could be biannual payments, yearly, etc.  and how do they break down between the different games etc.  So you may have had and increase in one games royalties but a decrease in others so it makes it look like decrease across the board.  So you can't take into effect the difference  with royalties without the breakdown.  Still a 10% decrease in box sales for a game that has been out for a while is considered doing very well from a financial standpoint.

  • Gaia_HunterGaia_Hunter Member UncommonPosts: 3,066
    Originally posted by jpnz

    40% down is 40% down.

    It paid itself several times over so the product was a success though.

    But with those figures I suspect someone at NCSoft or ANet (probably both) are going 'Expansion! NOW!'

    40% down what?

    GW2 dropped 13% compared to last quarter and 30% down compared to 1 year ago.

    image

     

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

  • MukeMuke Member RarePosts: 2,614
    Originally posted by caetftl

     

     

    Also have fun in gw2... let me know how the pvp is going...

    PVP is doing good, having lots of fun in a free MMO....

    But, I am curious which MMO you are playing is threatened by GW2?

     

    "going into arguments with idiots is a lost cause, it requires you to stoop down to their level and you can't win"

  • DamonVileDamonVile Member UncommonPosts: 4,818
    Originally posted by Wizardry
    Originally posted by DamonVile

    Why do people look at 1 quarter and try and spin it like it means something. Do these companies not have ups and downs depending on what game just launched are they starting development on something new have they just spent a fortune advertising a new mmo...etc.etc.

     

    You can do a Google search,some company did a report that at least 30% of Steam purchases were never played even once.Then one of the genres was just over 50% never played once after the purchase.

    It says a LOT about the industry and the quality.Imagine how high the % is of games people played only very little to find out it was not good enough for them,i am guessing well over 50%.So developers are LUCKY they have sales as high as they do because of poor spending choices by gamer's. Those so fast to spend are  feeding developer's more money than their games deserve.I think the numbers also prove that players are just bored and buying almost ANY game that has decent hype.

    IMO we should all stop buying on a whim,wait until you can fully trial a game,don't be lured in by new shiny skins because eventually every one of these games are playing the same old we already been there a hundred times before.

    Let's start pushing this industry forward and demand developers give us a better effort,quit handing over free money to the rich.

    I might also add that it is EASY for a developer to have lower than expected profits,they have a free ticket to write themselves huge salaries and bonuses and have various ways to avoid tax paying.It is a fine line to produce big numbers for investors and paying millions in taxes.

    yes people buying $2 games on steam sales and then never playing them shows the lack of quality in games. All you've done is shown if you try hard enough you can make any statistic agree with you.

  • caetftlcaetftl Member Posts: 358
    Originally posted by Muke
    Originally posted by caetftl

     

     

    Also have fun in gw2... let me know how the pvp is going...

    PVP is doing good, having lots of fun in a free MMO....

    But, I am curious which MMO you are playing is threatened by GW2?

     

    Wait gw2 is a f2p mmo?  Weird... I thought it was b2p...

    I don't think any mmo is threatened by gw2 at this point lol...

  • MukeMuke Member RarePosts: 2,614
    Originally posted by caetftl
    Originally posted by Muke
    Originally posted by caetftl

     

     

    Also have fun in gw2... let me know how the pvp is going...

    PVP is doing good, having lots of fun in a free MMO....

    But, I am curious which MMO you are playing is threatened by GW2?

     

    Wait gw2 is a f2p mmo?  Weird... I thought it was b2p...

    I don't think any mmo is threatened by gw2 at this point lol...

    Ofc you never bought the game first.

    And no, I haven't paid since, buying all perks with ingame earned gold.

     

    (PS: is it WoW with the "phasing"/merging servers?)

    "going into arguments with idiots is a lost cause, it requires you to stoop down to their level and you can't win"

  • caetftlcaetftl Member Posts: 358
    Originally posted by Muke
    Originally posted by caetftl
    Originally posted by Muke
    Originally posted by caetftl

     

     

    Also have fun in gw2... let me know how the pvp is going...

    PVP is doing good, having lots of fun in a free MMO....

    But, I am curious which MMO you are playing is threatened by GW2?

     

    Wait gw2 is a f2p mmo?  Weird... I thought it was b2p...

    I don't think any mmo is threatened by gw2 at this point lol...

    Ofc you never bought the game first.

    And no, I haven't paid since, buying all perks with ingame earned gold.

     

    (PS: is it WoW with the "phasing"/merging servers?)

    I think you are having trouble... is gw2 a free to play game or a buy to play game?  Why are you talking about perks or saying I never bought the game first?

     

    Ya I think they merged servers to make low pop servers feel like the world was more populated... thank god gw2 never did anything like that but called it something else so the fans wouldn't freak out. 

  • GaleOmGaleOm Member UncommonPosts: 28
    You looking it wrong, GW2 playerbase is up form last Q, not down. GW2 is not sub game so less income does not mean less people are playing, any profit means that playerbase is growing.
  • caetftlcaetftl Member Posts: 358
    Originally posted by GaleOm
    You looking it wrong, GW2 playerbase is up form last Q, not down. GW2 is not sub game so less income does not mean less people are playing, any profit means that playerbase is growing.

    If a company  has a certain amount of sales during one quarter for a game, that means the demand was at that level for what they had to offer... if the next quarter they have less sales that means there is less of a demand for what they have to offer. 

  • nastyjmannastyjman Member Posts: 161

    Oh no! Sales are down. I guess it's time for me to quit the game then!

    /s

    Looking at the report, GW2 is still kicking ass and is ranked 2nd in NCSoft's portfolio (Lineage with 97.9 Mill sales; GW2 with 47.3 Mill sales).

    But this thread belongs to a troll, so let their doom-and-gloom-extravaganza begin!

  • MukeMuke Member RarePosts: 2,614
    Originally posted by caetftl
    Originally posted by Muke
    Originally posted by caetftl
    Originally posted by Muke

    Wait gw2 is a f2p mmo?  Weird... I thought it was b2p...

    I don't think any mmo is threatened by gw2 at this point lol...

    I think you are having trouble... is gw2 a free to play game or a buy to play game? 

    Read up on GW2 Sherlock, Game doesnt have subs.

     

     

    "going into arguments with idiots is a lost cause, it requires you to stoop down to their level and you can't win"

  • BladestromBladestrom Member UncommonPosts: 5,001
    Originally posted by caetftl
    Originally posted by Muke
    Originally posted by caetftl
    Originally posted by Muke
    Originally posted by caetftl

     

     

    Also have fun in gw2... let me know how the pvp is going...

    PVP is doing good, having lots of fun in a free MMO....

    But, I am curious which MMO you are playing is threatened by GW2?

     

    Wait gw2 is a f2p mmo?  Weird... I thought it was b2p...

    I don't think any mmo is threatened by gw2 at this point lol...

    Ofc you never bought the game first.

    And no, I haven't paid since, buying all perks with ingame earned gold.

     

    (PS: is it WoW with the "phasing"/merging servers?)

    I think you are having trouble... is gw2 a free to play game or a buy to play game?  Why are you talking about perks or saying I never bought the game first?

     

    Ya I think they merged servers to make low pop servers feel like the world was more populated... thank god gw2 never did anything like that but called it something else so the fans wouldn't freak out. 

     Your thread post history makes for interesting reading caetftl, almost every post you make is negative comments about the GW2, including previous financial reports, that's very odd behavior, why is this?

    To help you though, lets make it simple.  The game allows players to play for free with its current model, and it is a success, the game has made profit and continues to do so. Players continue to play for free 2 years on, content continues to be pumped out as fast if not faster than any other mmo.  If you somehow feel offended by this, you should ask yourself honestly why? its just a game.

     

    rpg/mmorg history: Dun Darach>Bloodwych>Bards Tale 1-3>Eye of the beholder > Might and Magic 2,3,5 > FFVII> Baldur's Gate 1, 2 > Planescape Torment >Morrowind > WOW > oblivion > LOTR > Guild Wars (1900hrs elementalist) Vanguard. > GW2(1000 elementalist), Wildstar

    Now playing GW2, AOW 3, ESO, LOTR, Elite D

  • caetftlcaetftl Member Posts: 358
    Originally posted by Muke
    Originally posted by caetftl
    Originally posted by Muke
    Originally posted by caetftl
    Originally posted by Muke

    Wait gw2 is a f2p mmo?  Weird... I thought it was b2p...

    I don't think any mmo is threatened by gw2 at this point lol...

    I think you are having trouble... is gw2 a free to play game or a buy to play game? 

    Read up on GW2 Sherlock, Game doesnt have subs.

     

     

    But is it free to play or buy to play?

     

    I'm pretty sure it falls under the category of "buy to play".... which is not "free to play".

     

    Originally posted by Bladestrom
    Originally posted by caetftl
    Originally posted by Muke
    Originally posted by caetftl
    Originally posted by Muke
    Originally posted by caetftl

     

     

    Also have fun in gw2... let me know how the pvp is going...

    PVP is doing good, having lots of fun in a free MMO....

    But, I am curious which MMO you are playing is threatened by GW2?

     

    Wait gw2 is a f2p mmo?  Weird... I thought it was b2p...

    I don't think any mmo is threatened by gw2 at this point lol...

    Ofc you never bought the game first.

    And no, I haven't paid since, buying all perks with ingame earned gold.

     

    (PS: is it WoW with the "phasing"/merging servers?)

    I think you are having trouble... is gw2 a free to play game or a buy to play game?  Why are you talking about perks or saying I never bought the game first?

     

    Ya I think they merged servers to make low pop servers feel like the world was more populated... thank god gw2 never did anything like that but called it something else so the fans wouldn't freak out. 

     Your thread post history makes for interesting reading caetftl, almost every post you make is negative comments about the GW2, including previous financial reports, that's very odd behavior, why is this?

    To help you though, lets make it simple.  The game allows players to play for free with its current model, and it is a success, the game has made profit and continues to do so. Players continue to play for free 2 years on, content continues to be pumped out as fast if not faster than any other mmo.  If you somehow feel offended by this, you should ask yourself honestly why? its just a game.

     

    The most fascinating aspect of your interpretation is that my posts only come off "negative" to people who are not objective and are too biased towards gw2.  I stick to the facts in reality....

  • BladestromBladestrom Member UncommonPosts: 5,001
    Originally posted by caetftl
    Originally posted by Muke
    Originally posted by caetftl
    Originally posted by Muke
    Originally posted by caetftl
    Originally posted by Muke

    Wait gw2 is a f2p mmo?  Weird... I thought it was b2p...

    I don't think any mmo is threatened by gw2 at this point lol...

    I think you are having trouble... is gw2 a free to play game or a buy to play game? 

    Read up on GW2 Sherlock, Game doesnt have subs.

     

     

    But is it free to play or buy to play?

     

    I'm pretty sure it falls under the category of "buy to play".... which is not "free to play".

     A game would technically be B2P if they paid 50 pence in a bargain bucket for a game, so its a largely irrelevant fact (most if not all AAA MMO have box price)  The meat of the matter is wether a game costs money to play on the server each month, which is obviously the point being made.

    rpg/mmorg history: Dun Darach>Bloodwych>Bards Tale 1-3>Eye of the beholder > Might and Magic 2,3,5 > FFVII> Baldur's Gate 1, 2 > Planescape Torment >Morrowind > WOW > oblivion > LOTR > Guild Wars (1900hrs elementalist) Vanguard. > GW2(1000 elementalist), Wildstar

    Now playing GW2, AOW 3, ESO, LOTR, Elite D

  • BetaguyBetaguy Member UncommonPosts: 2,629
    Originally posted by AreWeLive
    well the good news is right now gw2 is 50% off. Go to their site, click on the buy now and get it for $25...it is worth $25...

    Depends on the individual, I wouldn't take it if it was free.

    "The King and the Pawn return to the same box at the end of the game"

  • caetftlcaetftl Member Posts: 358
    Originally posted by Bladestrom
    Originally posted by caetftl
    Originally posted by Muke
    Originally posted by caetftl
    Originally posted by Muke
    Originally posted by caetftl
    Originally posted by Muke

    Wait gw2 is a f2p mmo?  Weird... I thought it was b2p...

    I don't think any mmo is threatened by gw2 at this point lol...

    I think you are having trouble... is gw2 a free to play game or a buy to play game? 

    Read up on GW2 Sherlock, Game doesnt have subs.

     

     

    But is it free to play or buy to play?

     

    I'm pretty sure it falls under the category of "buy to play".... which is not "free to play".

     A game would technically be B2P if they paid 50 pence in a bargain bucket for a game, so its a largely irrelevant fact (most if not all AAA MMO have box price)  The meat of the matter is wether a game costs money to play on the server each month, which is obviously the point being made.

    That's so odd considering the b2p is a very important aspect to the revenue they've made....

     

    Points in a thread about a financial report don't hold much weight if you can not properly understand gw2's business model and the impact certain aspects of it have on the future of the game...

     

    Anyway the point he was trying to make was that pvp is doing great in a "free mmo" implying you have to pay nothing to get the pvp experience... which simply isn't true...

  • AlverantAlverant Member RarePosts: 1,320
    Originally posted by DMKano

    For GW2 it doesn't mean much.

    For Wildstar (launch month) - it means A LOT.

    Except Wildstar was launched in the 3rd quarter not the second.

  • BladestromBladestrom Member UncommonPosts: 5,001
    Originally posted by caetftl
    Originally posted by Bladestrom
    Originally posted by caetftl
    Originally posted by Muke
    Originally posted by caetftl
    Originally posted by Muke
    Originally posted by caetftl
    Originally posted by Muke

    Wait gw2 is a f2p mmo?  Weird... I thought it was b2p...

    I don't think any mmo is threatened by gw2 at this point lol...

    I think you are having trouble... is gw2 a free to play game or a buy to play game? 

    Read up on GW2 Sherlock, Game doesnt have subs.

     

     

    But is it free to play or buy to play?

     

    I'm pretty sure it falls under the category of "buy to play".... which is not "free to play".

     A game would technically be B2P if they paid 50 pence in a bargain bucket for a game, so its a largely irrelevant fact (most if not all AAA MMO have box price)  The meat of the matter is wether a game costs money to play on the server each month, which is obviously the point being made.

    That's so odd considering the b2p is a very important aspect to the revenue they've made....

     

    Points in a thread about a financial report don't hold much weight if you can not properly understand gw2's business model and the impact certain aspects of it have on the future of the game...

     

    Anyway the point he was trying to make was that pvp is doing great in a "free mmo" implying you have to pay nothing to get the pvp experience... which simply isn't true...

    Being deliberately obtuse does not make my point invalid, i was obviously referring the posts above and not the main thread of conversation in the thread.

      Back to the The financial report, it made very good reading for GW2, and it looks as if Wildstar is the potential risk there - so within the context of this GW2 'not pretty reading' makes absolutely no sense.

    'Also have fun in gw2... let me know how the pvp is going...' not sure what this has to do with analysis of a financial report either.  I spent 4 hours last night in WVW and had a great time, that's after 2 years on and off casual play, you are confusing personal taste with fact. (ive spent £8 so far in 21 years at the start to buy a bag if i remember, I don't recall that bag being a gamebreaker in PVP.)

     

    rpg/mmorg history: Dun Darach>Bloodwych>Bards Tale 1-3>Eye of the beholder > Might and Magic 2,3,5 > FFVII> Baldur's Gate 1, 2 > Planescape Torment >Morrowind > WOW > oblivion > LOTR > Guild Wars (1900hrs elementalist) Vanguard. > GW2(1000 elementalist), Wildstar

    Now playing GW2, AOW 3, ESO, LOTR, Elite D

This discussion has been closed.