NCsoft’s first quarter 2018 financial results are in, and it’s… kinda OK? Guild Wars 2 saw a big drop-off, though that’s to be expected since the previous quarter saw revenues from Path of Fire. “GW2 sales dropped 32% QOQ but increased 66% YOY, as some of the 2nd expansion pack effect was included,” NCsoft notes.
Blade & Soul continues to perform well QOQ, though it’s lost a quarter of its revenue YOY, and Aion revenues surged, NCsoft says, “fueled by the change in the monetization scheme.” Lineage itself at one time seemed to drive the company all by itself, but it’s down QOQ and YOY too. So is the company’s mobile games branch, which was riding high on Lineage M last year but is now “stabilizing” at what one might assume is a more realistic number (which is still higher than the five big MMORPGs combined).
As MMO Culture reports, the investor call itself admitted that Blade & Soul II for mobile has already been delayed into 2019 as it “didn’t meet expectations.” It’s apparently gotten a new team and new redesign, which is basically what happened to Lineage Eternal way back when, you’ll recall. And speaking of that: Project TL is supposedly still on schedule, with a launch still on track for next year.
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!