Nexon and NCsoft part ways

After a turbulent partnership, MMO companies Nexon and NCsoft have finally parted ways.

Nexon sold its 15.08% of shares back to NCsoft today, ending the two companies’ intertwined and sometimes hostile relationship. The sale of 3.37 million shares amounted to a whopping $533 million and was managed by Morgan Stanley. NCsoft Chief Executive Kim Taek-jin bought 440,000 of those shares personally, raising his stake in the company to 12%.

Nexon first bought into NCsoft back in 2012, looking to forge a beneficial synergy between the two companies. However, the association quickly turned sour as Nexon began exerting demands on NCsoft that the latter resisted, a move that was followed by NCsoft purchasing Netmarble stock as a plan to resist a hostile takeover from Nexon. Tensions between the companies have been frosty ever since.

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breetoplay
Guest
breetoplay

srmalloy Thank you for posting this. It drives me crazy when this crucial fact — that CoH was supporting two games, one of which was in a very early R&D stage — is conveniently omitted in the midst of people rushing to stomp on CoH.

MagmaFist
Guest
MagmaFist

theblackmage75 And heck, I will take a maintenance mode CoH and gladly pay $15/month for it. Just finish i24 if possible.

MagmaFist
Guest
MagmaFist

theblackmage75 Me too. My wallet is ready, NCSoft.

Jesse Schulkers
Guest
Jesse Schulkers

Good riddance. I want to see how NCSoft manages, not Nexon. Nexons made some good games that I like but I did not see this partnership going anywhere pleasant.

srmalloy
Guest
srmalloy

Ehra curiositytime syberghost devin007 Paragon Studios was losing money, because they had an NCsoft-imposed development project that was sucking down all the profits from CoH and more; in that state, NCsoft could ‘rationally’ shut down Paragon Studios (and with it, CoH) because it was losing money. According to Positron, without the second project, Paragon Studios would be in the black; when CoH went free-to-play with a game store, its income jumped significantly.

That doesn’t explain why NCsoft didn’t just kill the second project that was sucking money for no return. My belief is that NCsoft, as a Korean company, didn’t want CoH because its concept and execution was inherently foreign to the MMORPG as it had evolved in Korea, and it couldn’t be monetized the way Korean MMORPGs have been, with the game store being the primary moneymaker for the game.

srmalloy
Guest
srmalloy

theblackmage75 Hopefully, the resolution of the fight between Nexon and NCsoft will mean that the negotiations for buying the IP and codebase away from NCsoft, which have been stalled for months while NCsoft’s attentions were focused elsewhere (don’t ask for details, there’s an NDA on the negotiations; we know they were stalled, not stopped, but that’s it), can resume.

Jack Pipsam
Guest
Jack Pipsam

devin007 They also wiped people’s old accounts if you didn’t do a migration thing, that’s evil.

quark1020
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quark1020

usagizero A lesser of two evils. That’s really all it is.

syberghost
Guest
syberghost

Ehra curiositytime syberghost devin007 some of those people were the devs on the game.

wjowski
Guest
wjowski

It’s too bad.  I was looking forward to NCSoft being hollowed out for it’s valuables before having it’s lifeless husk tossed aside.

Craywulf
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Craywulf

SoMuchMass $710 million was inflated price for only 15.08%, It would’ve taken Nexon 10 years to make money on it. It was never going happen. Nexon was suckered.

apmartinez765
Guest
apmartinez765

Thank God

Ehra
Guest
Ehra

curiositytime syberghost devin007 
Ran out of time to edit, just wanted to add this:
There were people on the official forums predicting the shutdown would
happen based on the game’s performances during the investor calls, but
they’d get shouted down has haters / conspiracy theorists because
people, understandably, didn’t want to believe that even at a time when
the game was putting out its best content ever it still wasn’t
performing well.

Ehra
Guest
Ehra

McGuffn Ehra playerxx Natarm 
I still have the box sitting around the house somewhere.

Ehra
Guest
Ehra

curiositytime syberghost devin007 
In the case of CoH specifically, you’re not going to get any proof. I was playing CoH up to the shutdown, but the simple fact is that the investor calls at the time showed that CoH was barely pulling in more money than GW1 was. Add in the costs of a fully active development team putting out monthly paid content for CoH vs GW1 having very little new content being put out at the time (and the only paid content was a few costumes being added to the cash shop now and again), and the total revenue of CoH was likely a great deal lower than GW1. 
People constantly go on about how CoH was “profitable,” and it may have been true…. technically. Something you invest $1 million into and gives back $1million +$1 is technically profitable, but that doesn’t mean it’s a worthwhile investment/risk compared to other places you could choose to invest that $1 million. CoH simply wasn’t making enough money to justify the resources being put into it, and so NCsoft decided to just get rid of it rather than bother with maintenance mode.

duane99
Guest
duane99

theblackmage75  ditto

SoMuchMass
Guest
SoMuchMass

Armsbend SoMuchMass There are short term effects of a minor takeover, but the takeover was blocked over 3 years ago but the stock is still half of what it was in 2012 and it doesn’t seem like there is anything of value coming in the near future.
Nexon lost nearly 200 million dollars in their investment on NCSoft.

curiositytime
Guest
curiositytime

syberghost devin007 I demand proof the games they closed were profitable. Extraordinary claims require extraordinary evidence. I’ve been in F2P MMOs for awhile, and I have helped close many games that became unprofitable. I also have friends at NCSoft that do not agree with your statement. However, I will always listen to evidence, so if you can provide it I am more then willing to concede the point.

Midgetsnowman
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Midgetsnowman

I’m not ncsoft’s biggest fan..but I’d much rather them not be owned in any part by nexon.

playerxx
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playerxx

theblackmage75 I would just go to them tell them to get their shit together and just revive it. ” Please” has left long ago…

Denice J Cook
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Denice J Cook

Celestia

Love your avatar!    It’s….super!    :)

Denice J Cook
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Denice J Cook

Pralix theblackmage75

Me too!

xDrac
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xDrac

Lineage 3 please

Pralix
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Pralix

theblackmage75 Well, I’m certainly one of them!

ArtemisiaWS
Guest
ArtemisiaWS

Rohirrim Greaterdivinity For me also business models. Now their support is all another thing…

Armsbend
Guest
Armsbend

SoMuchMass No, what you have is an artificial inflation after Nexon’s attempted buyout and then the subsequent fall after investors realized the takeover might now go through.  When a company is going through the pitfalls of a hostile takeover stock price is rarely indicative of a company’s profits and always indicative of demand.

NC Soft did buy themselves out.  Otherwise Nexon would have dumped the stock on the market and would have lost much, much more as there would have been the demand for such a large stake.  This was an agreement between two parties.  NC Soft bought themselves out.  No leeway on the interpretation.

Armsbend
Guest
Armsbend

raincoat Sarigar yeh according to the Korean Times they paid roughly 700M USD for the their stake and sold for 550M.  Think about how far 150M could go towards the development of a good game with a good developer.  What a waste.

Mogan Stanley is loving the hell out of this back and forth though.

Siphaed
Guest
Siphaed

playerxx

Their plan was infiltration, control, and an overall hostile takeover.   All of which was resisted by NCSoft so much that Nexon won’t spend the effort any more.

syberghost
Guest
syberghost

devin007 if it was that, you’d be right; but NCSoft has a well-deserved reputation for shuttering profitable games on short notice. They don’t like to have very many games, so if it doesn’t perform in the top tier, it goes. Most other studios will keep a profitable game around as long as they can keep it profitable.

Until the SOE/DGC shakeup, they were the only multi-MMO publisher that had more games cancelled than running; and SOE wasn’t closing profitable games.

SoMuchMass
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SoMuchMass

Interesting that Nexon just dumped them, it wasn’t like NCSoft bough themselves out.  Maybe Nexon felt NCSoft didn’t have too much of a bright future, so they backed out of their investment?

Dystopiq
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Dystopiq

Damonvile On disc DLC sucks.

Rohirrim
Guest
Rohirrim

Greaterdivinity NCSoft never disappointed me in 2 things: Beautiful characters and great/fluid combat. If they were not too stubborn on some of their design choices, they could be much much higher…

theblackmage75
Guest
theblackmage75

Dear NCSoft,

Can we have City of Heroes back now, please?

Signed,

Me (and probably one or two other people)

phoenix0401
Guest
phoenix0401

I don’t know about Korean Law but it would probably raise eyebrows at the FTC for a company that can’t pay it’s bondholders to spend $500 million buying out a stockholder.

McGuffn
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McGuffn

Ehra playerxx Natarm The world is infinitely poorer without Auto Assault. Worst decision ever.

Tamanous
Guest
Tamanous

Natarm They could make money easily if they reopened it. Would be a very smart move. Indie version are being made to fill the gap and Cryptic continues to ignore Champions Online. NCsoft could steal the market entirely back in an instant.

demonxaphan
Guest
demonxaphan

Mind Flayer Only company hated worse than those is EA. All gaming companies have something that players gripe about, asking if there is any good companies out there is subjective to those who play the games.

Celestia
Guest
Celestia

I rarely agree with NCsoft’s decisions, but they’ve proven their nimble determination time and again. That’s got to be worth something.

devin007
Guest
devin007

If the only reason why people hate NCSoft is because they shutter games than that’d pretty sad. If a game isn’t making any money or is just breaking even, of course they are going to move those development assests some where else. Its a publicly traded company they have to increase their margins and share price they can’t really sit stangnant.
They can’t sit at a shareholder’s meeting every year and say hey guys we made barely any revenue on this game and those 50 or what ever it was programmers that could be shifted to more profitable projects will just sit there generating next to no income for the company so a hand full of CoH players aren’t butt hurt.

SirMysk Needs (More) Coffee, Probably
Guest
SirMysk Needs (More) Coffee, Probably

Nothing of value was lost. Not that I’ve any love for NCSoft, but they treated NCSoft almost as bad as they treat their players.

Cevo
Guest
Cevo

No, because everyone wants their game to be catered to them and everyone forgets they are a business and anything they do to make money is seen as greedy.

BalsBigBrother
Guest
BalsBigBrother

No beef personally with either of these companies.  Still it seems the general concensus of the comments is that NCSoft are better off without Nexon so it will be interesting to see if that will be the case /shrugs

JudgeDavid101
Guest
JudgeDavid101

Real life PVP.

BryanCo
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BryanCo

playerxx Natarm  “if NCsoft is good”
That’s a big ‘if.’

BryanCo
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BryanCo

Feydakin  The lesser of two evils is still evil.

Dystopiq
Guest
Dystopiq

playerxx Natarm It won’t be profitable in today’s market.

ArtemisiaWS
Guest
ArtemisiaWS

Greaterdivinity Agreed!

Feydakin
Guest
Feydakin

Good, NCSoft is definitely the lesser of two evils here, but lest we forget the long line of games shuttered by NCSoft… Neither company has been an amazing fit in the Western market really. I am glad that what appeared to be Nexon’s hostile takeover has failed though.

ProfessionalNoob
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ProfessionalNoob

Ehra playerxx Natarm Sadly I agree. Even if the servers were turned on tomorrow, the team that made City of Heroes what it was won’t be there.

It’d be nice but it wouldnt be the same. 

You can’t go home. :

Greaterdivinity
Guest
Greaterdivinity

This pleases me. Despite the hate NCsoft gets, I still think they’re a pretty decent company (especially with how hands off they are with their Western studios) and I’ve enjoyed their games over the years.
Nexon though…bleh.

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