NCsoft’s Q3 2015 report: Guild Wars 2, WildStar, all sales dip downward [Updated]

    
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Fail together!

The bad news for the most recent NCsoft financial report is that once again, profits from WildStar were down slightly from the previous quarter — but this round, even Guild Wars 2‘s profits were down a bit. In fact, sales dipped for all of NCsoft’s big games, and profit for the company was down on the whole, quarter-over-quarter and year-over-year, so the takeway isn’t that specific games are underperforming relative to the others but that NCsoft had a bad quarter overall. Decreased profits are attributed to a lack of in-game promotions with the company’s highest-earning titles.

Of note is that the third quarter report stretches only to the end of September, thus predating both WildStar‘s shift in business model and Guild Wars 2‘s first expansion release. During the conference call, NCsoft said it has been focused on cost-efficiency and expects fourth quarter revenues to improve, referencing Guild Wars 2 specifically. Fans of the aforementioned games should keep their eyes peeled for next quarter’s results.

Update: We’ve included transcripts of excerpts from the translated conference call below.

highlights

sales

Source: Earnings report; thanks to Carl for the tip!
Addendum: During its conference call, NCsoft told investors that it plans to market Heart of Thorns aggressively. In answer to questions about Guild Wars 2, a company rep explained (through his translator — apologies for some of the parts that we couldn’t make out or make sense of in our transcription here):

We are actually observing very visible performance from the active users. […] We are very much targeting […] high-level users. So before the launch, we had six weeks for the free-play users […] to […] enjoy the game and for them to […] reach the cap, but we expected a lot of them would reach the cap level, but however only some of them would reach the cap level during the six-week free-play period. So some of those who reached the cap level are buying this expansion pack. […] However, the new users who are also reaching the cap level, and of course when they are very much buying the expansion pack, but we are preparing for the promotions and the events. And also […] there will be users who have not yet reached the cap level, but still we are going to target those users who reach the cap level and who will buy the expansion pack.

As for the marketing span in the fourth quarter, we anticipate that it will increase compared to the third quarter. Of course, as mentioned earlier: The Guild Wars 2 expansion pack, to […] increase the sales we will be very aggressive on the marketing span for the Guild Wars 2 expansion pack.

The sales performance in the North American region would be very much contingent on the Guild Wars 2 and WildStar performance. We had a very big launch impact of WildStar, but that impact has been diluted this year. [Guild Wars 2’s expansion] performance will be incorporated into the fourth quarter results, so the sales trend will be turning into a positive trend.

As for WildStar, at the end of September, we launched as free-to-play […], so after that there has been very active user movement, very very active and conspicuous user movement in WildStar. And it’s a bit down right now and it’s a bit stabilized level, but it has been only one month since this launch, so it’s a bit shorter period for us to have a very confident comment on that, [but] still we are expecting that that will go up, so we will be able to have a significant impact on the fourth quarter. […] We expect sales to increase, definitely.

NCsoft also says that its San Mateo mobile studio has 60 employees of a planned 100. It is expected to “leverage” a new IP as well as NCsoft’s existing IPs.

 

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gav4985
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gav4985

People are getting fed up with pay to win game formats, bring back city of heroes!!!!!

Noyjitat
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Noyjitat

1  Poor advertising (let’s be serious here, games like candy crush get more commercials)
2 Years of screwing over customers and communities by shutting down more mmos than any mmo company to date. 
3 overhyping game expansions and new titles while tying developers hands to a “release it NAO even though it’s not ready to be released”

Yeah it’s starting to catch up with them.

chosenxeno
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chosenxeno

duane99 chosenxeno Sazri This doesn’t even make sense. She’s already taken dude.

duane99
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duane99

chosenxeno Sazri  you seem to do a good job at it yourself

Zukkitude
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Zukkitude

Also 7 million copies of a game sold isn’t uncommon…

Zukkitude
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Zukkitude

@SallyBowls1 – How is 7 million units sold close to a quarter of a billion? For your future reference that would be 250 million units = 1/4 of a billion.
Learn basic numbers before you try and correct people, the source I read may have been inaccurate but you are as far correct as possible!

chosenxeno
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chosenxeno

Sazri chosenxeno This does little to shift my point. Please don’t litter my mailbox with drivel.

swordandkeyboardgaming
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swordandkeyboardgaming

gw2 devs just don’t get it.  on top of that they just absorb all the ”its so wonderful crowd”’ , everything is amazing and wonderful.

Sorry but hundred thousand (random number/ im sure its more) wvw player’s that left after 1st 6 months will never return, and half that group came back to give it a second chance just to quit.  Instead of fixing the wvw grounds 1st they added the mist.

Not in HOT they added ridiculous full that is already empty.  Adding more pve to pvp area, and thining outt the population in those areas by making bigger areas.  Instead they should have stream lined the areas to make more fights and land more valuable to defend.

For me they just don’t think things out when comes to wvw.  Love the devs, nice people sorry if my opinions hurt but some times truth hurts.
Game I once spend many many hours and my wvw rank is very high on 2 accounts. Just no reason for me to play wvw anymore sadly.

Or even log in either because the HOT is for big guilds small ones are screwed  over majorly. Ive returned to single player games after years and years of being a mmo strictly guy.

Sazri
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Sazri

chosenxeno Wildstar’s been f2p for a month, and HoT has been out for two weeks. You have a bad sense of time.

Maelzrael
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Maelzrael

Telos_ Gw2 is dope. :)