NCSoft's Q1 Financials: Everything's Down, But That's OK, Right?
Having looked through a bunch of financial reports lately, I'm amused by how, no matter how bad a quarter might look, the language will always be positive. There's always a perfectly valid reason why the numbers are down, but don't worry! They'll be better soon, trust us! In the case of NCSoft's latest report for the first quarter of 2015, I'm actually willing to believe it.
If you compare Q1 2015 to Q1 2014, total sales for all NCSoft products are down 20%, while operating profit is down a staggering 49%. The report explains this away by saying
Sales and operating profit declined from a high base created in 4Q due to year-end promotions. However, both sales and operating profit are expected to rebound in 2H as momentum is created from new online and mobile game launches.
The "post-holiday blues" reasoning might have some merit, since year-over-year numbers -- comparing Q1 2015 to Q1 2014 -- are virtually the same across all counting methods. So maybe it really is just a cyclical, yearly thing.
Really, much of the damage comes from Lineage's slide. Sales for the game had been growing by leaps and bounds for the past year but dropped back to Earth in Q1, losing about 1/3 of its sales, going from about 96 billion Korean won to 66 billion KRW. Lineage II also dropped significantly, from 19.4 billion to 11 billion. Meanwhile, Aion, Blade & Soul, and Guild Wars 2 held mostly steady.
And WildStar? Down another 50% in sales, from 5.5 billion KRW to 2.6 KRW. That F2P/B2P transition can't come soon enough, even if some folks don't want to talk about it.
As is the case with most "down" financial reports, the overall tone of the document is one of optimism for the future and pointing out the positives. Hey, expenses are down! Blade & Soul is big in Taiwan! That Guild Wars 2 expansion sure looks swell! NCSoft has weathered worse dry spells before, so the company's probably OK with a slightly down quarter. After all, companies that are in financial trouble don't do stuff like this:
Labor costs increased in 1Q, due to a special one-off bonus paid to all employees.
Related Articles
About the Author

Jason Winter is a veteran gaming journalist, he brings a wide range of experience to MMOBomb, including two years with Beckett Media where he served as the editor of the leading gaming magazine Massive Online Gamer. He has also written professionally for several gaming websites.
Read Next
Path of Exile: The Awakening Founder's Packs Selling Like Crazy!
Very few of us like Founder's Packs for games we haven't even been able to play yet, but Path of Exile is showing that Founder's Packs can be done well and will be bought up like crazy (even if some of the price points are a b...
By Michael Byrne - 8 years agoYou May Enjoy
P2E MMORPG Riders of Icarus Sees New Map Expansion MAGMAPORA Launch Today
This volcanic-themed region offers fresh quests, creatures, and mysteries.
By Matthew D'Onofrio - 1 week agoSkyforge's Oceanid Season Launches Today, Featuring Invasion-Exclusive Rewards For Players
It's time to get wet.
By Matthew D'Onofrio - 1 week agoBlood Bowl III’s Season 2 Is About To Kick Off, But Some Awaited Changes Just Aren't Ready Yet
It’s time to introduce a new faction.
By QuintLyn Bowers - 2 days agoHere's What You Need To Know About Warhaven, Nexon's New PvP Game That's Launching Today
You have a sword, but no bow...and no axe.
By Matthew D'Onofrio - 2 days agoEverything We Learned About The Elder Scrolls Online's Endless Archive And Update 40 During Today's Livestream
There's a ton of new awesome coming to ESO.
By Troy Blackburn - 1 week agoWorld of Warships Celebrates 8th Anniversary In September Update With Big Game Improvements
There's plenty of new content too.
By Matthew D'Onofrio - 1 week ago
It's a dreadful experience and nearly unplayable. Ncsoft is also shameless at their cash shop practices. (In contrast to excellent models like Path Of Exile)