Korean analysts believe Blade & Soul’s western launch generated $17M in new revenue

    
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Korean investment firm KDB Daewoo Securities has published its outlook on MMO giant NCsoft for the past and coming quarter.

“We estimate Blade & Soul US (launched in January) generated more than W20bn in new revenue, and believe revenue from all of the company’s cash cow titles (Lineage I, Lineage II, Aion, Blade & Soul, and Guild Wars 2) also remained solid in the quarter. Earnings were likely further supported by lower expenses, with both special items (e.g., professional baseball team contracts) and marketing spend declining QoQ.”

Daewoo believes that the Lineage Eternal beta tests this quarter are “unlikely to have a meaningful impact” on the value of the company’s stock and thinks the next few months will see little by way of releases from the company.

“We expect an absence of new releases in May and June, but think this factor is already priced in. In our view, May and June could be seen as an opportune time to buy the stock in anticipation of the positive momentum ahead. We reiterate our Buy rating on NCSOFT with a target price of W420,000.”

Daewoo previously predicted 2016 would be a good year for NCsoft.

Source: Daewoo. Thanks, greaterdivinity!
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Koshelkin
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Koshelkin

Valkyrie Noel Koshelkin Qarran Shamancard a) Korea is still on a wholly different version. b) The main bulk of the finalists of last years championships in Korea where FMs and Destros with the odd KFM in between.

SallyBowls1
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SallyBowls1

VilleUusitalo  Well yeah.  The reference article even referred to “cash cow”  This is a term from the Boston Consulting Group where there are four quadrants that you put your products in: star, cash cow, dog and ?.  Cash cow is “a consistently profitable business, property, or product whose profits are used to finance a company’s investments in other areas”  

During the last earning call, NCSoft even said 

On the mobile side, right now, in terms of our R&D capacity or capabilities, on a global basis I think that mobile now account for around 30% of our R&D capabilities. So, therefore, not only in the Seoul head office, but in the US and also Japan, we continue to hire more development personnel.
Also, we’re converting some of the R&D researchers that we had on the online games side over to the mobile side. So this is an effort that we will continue throughout the year, so we do think that the percentage of mobile R&D personnel out of the whole will probably increase as a result of that this year.
The title of the article with that infographic was “Video games will become a $99.6B industry this year as mobile overtakes consoles and PCs”

Valkyrie Noel
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Valkyrie Noel

Koshelkin Qarran Shamancard Yes….because a majority of the classes appear and preform well at the national level events in Korea and Japan. Oh wait, that isn’t 1/3.

Husvik
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Husvik

BnS surprisingly enough still has me hooked. I was into Tera, totally left for BnS, jumped on-board with BDO it didn’t click as i still found BnS far more appealing.

I was hoping for a BnS/BDO combo, but I’ve been dipping in on Tera lately, a BnS/Tera combo is looking to be a possible ticket.

Husvik
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Husvik

Xijit Agree OUCH! I really hope they can turn it around. I really liked  it when i was playing it, but one day a switch went off and there has been zero desire to go back?

VilleUusitalo
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VilleUusitalo

good… we are 17m usd closer that NCsoft closes down mmo-branch after succesfully investing all the money from those to the development of its mobile branch Project-S… 

Couldnt be more excited of the BGGEST SCUMBAG corporation taking a hike from mmo industry.

Few more years and they will start exclusively milking Asian mobile business with garbage like Lineage2 mobile etc.

Denice J Cook
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Denice J Cook

SallyBowls1 
Is that chart gross income or their actual profit?

Denice J Cook
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Denice J Cook

Xijit 
Sadly, CoH was still profiting more than that when it was shuttered.  I fear for Carbine, I really do (just the same as I feared for them the minute I heard they signed on with NCSoft).  I really hope Steam saves them.

Denice J Cook
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Denice J Cook

breetoplay 
En Masse does a WAY, WAY better job of running their games than NCSoft does though, Bree.  
The ones NC doesn’t shutter in a year are plagued with gold farmers, botters and hackers and lag (gee, do you think these two things could have anything to do with each other?), and their chats have been completely decimated by gold spammers since their betas.  I know because I played games like Lineage 2 and Aion pretty hardcore when they came out.
Also, many players (like me, with CoH and Tabula Rasa) got burned by enough of NCSoft’s knee-jerk game shutterings to avoid them altogether.  That’s going to account for another slice of missing players in B & S.

Denice J Cook
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Denice J Cook

Koshelkin 
Not really, when you figure that most Asians play games out of internet cafes for pennies per hour (no box fee, no sub, time rolls into the next month if left unused).  I would venture to guess that those cafes don’t exactly feature state-of-the-art computers; I’ll bet they’re forced to play Lineage 1 because it’s one of the only games that will run n those type of machines.  Not many Asians have home PCs.