If you walked away confused by NCsoft’s most recent quarterly financial report, Mirae Asset Daewoo Co. might be able to sort it out for you.
The Seoul-based analyst firm suggests that the Lineage series, which appeared strong at first glance, actually turned in weaker than expected revenue, in spite of the fact that Lineage M was the top-grossing game on Android and iOS. “The biggest surprise was marketing spend, which jumped 10% QoQ and 69% YoY, despite the absence of any new major titles,” the firm notes. “We believe this suggests the company spent as much on promoting Lineage M’s massive updates as it typically does on promoting new titles.”
That said, the firm still calls the company a buy: “We see little reason for concern in terms of profit and valuation in 1H18 and see potential for earnings growth and a re-rating in 2H18, driven by new releases.” What new releases would those be? Blade & Soul II (first half of the year) and Aion Tempest and Lineage II M (last half of the year).
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Among the flurry of NCsoft reveals this week was word that the company is working on a follow-up to Blade and Soul for 2018.
The teaser for Blade and Soul II was shown at NCsoft’s Media Day. It’s a rather short clip that shows a western desert environment with some large dragon or dinosaur skeletons and a small party of adventurers walking under an arch.
Don’t toss your Blade and Soul account in anticipation of the sequel just yet, however. Blade and Soul II will be a mobile title and shouldn’t directly compete with the PC MMO. Check out the teaser trailer after the break!