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One Swordsman
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| QUOTE | MMOG giant remains bullish, says shortfall is in line with forecasts
Korean massively multiplayer game specialist NCsoft has announced financial results for the first quarter of FY 2006, revealing that while its sales in Asia continue to rise, its European and North American operations saw declining revenues.
The firm's overall revenues stood at KRW 78 billion (66 million Euro), of which sales in South Korea made up the lion's share - up marginally year on year at KRW 54.8 billion (46.4 million Euro) - while Japanese sales grew by over 40 per cent to KRW 11.3 billion (9.6 million Euro).
That puts Japan level with the United States, where sales declined by almost 57 per cent - and well ahead of Europe, which was down over 50 per cent to KRW 3.8 billion (3.2 million Euro).
However, NCsoft remains bullish on its growth prospects - claiming in a statement that the overseas decline is "generally in line with forecasts made at the beginning of the year" and anticipating that the second quarter will show a return to growth.
The firm is suffering because of a gradual slow-down in western revenues from some of its older products as the market prepares for new titles - with City of Heroes and its follow-up, City of Villains, showing a drop of 58 per cent in sales as the game continues to age.
Guild Wars sales are also slowing, with a 57 per cent fall in sales, but in the case of this product it's expected that it will regain its former position in the firm's sales figures with the launch of Guild Wars Factions late last month.
NCsoft is also expecting to see a major boost to this quarter in its western markets from the launch of Auto Assault, the first vehicular combat massively multiplayer game to hit the market, which launched on April 13th.
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| QUOTE | 17:15, May 8th by Ben Parfitt
MMO specialist NCsoft has been hit with a 49 per cent drop in profits, as revealed in its fiscal Q1 results.
The Korean firm reported a net income of $7.2 million for the quarter ending March 31st, down from $14.3 million for the same period last year.
Net sales, however, were up from last year, rising five per cent to $83 million, though this was thanks to a strong performance in the East – North American and European sales were down by half.
Declining sales of titles such as City of Heroes, City of Villains and Guild Wars, all of which saw sales drops of over 50 per cent, were primarily blamed for the results. New releases Guild Wars Factions and Auto Assault missed the Q1 window, giving hope to an improved performance in Q2.
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Original sources:
http://www.gamesindustry.biz/content_page.php?aid=16675
http://www.mcvuk.com/newsitem.php?id=985
Would it be the same if GW had a monthly fee? That's why you gotta admire them for sticking with it!
Discuss!
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| 05/09/06 09:14 |
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CaptainBobby
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| RE: NCSoft profits plunge! |
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They will be fine, they had a bunch of old games out the nobody was buying anymore. Now Factions is out, sales will go higher as people buy factions and the original guild wars
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| 05/09/06 09:19 |
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UCCat
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| RE: NCSoft profits plunge! |
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re the 'would it be the same with a monthly fee'...
i dont know, have never played a pay to play like everquest, WoW...etc... I can say I would never have bought GW if it were pay to play.
From my understanding... if the content of GW were the same as now, and it was pay to play... I dont think they could compete.
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| 05/09/06 09:20 |
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Evinmeer Montala
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| RE: NCSoft profits plunge! |
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Agreed! And to keep that purchase-only fee, we all need to do our part: introduce your friends and family to GW! Buy the collector's edition! Get the official guide book to the game! Whatever it takes, really: it's still going to be less expensive than a monthly subscription fee.
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| 05/09/06 09:22 |
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One Swordsman
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| RE: NCSoft profits plunge! |
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| QUOTE | | From my understanding... if the content of GW were the same as now, and it was pay to play... I dont think they could compete. |
I agree, I play 2 pay-to-play MMO's, and I must say, as much as I love Guild Wars, that they contain a much denser experience content wise. And alot more live updates in the way of new game content for free.
But then that's primarily what a monthly fee is for.
I must say, that Anet and NCsoft are brave in pursuing the No-Monthly-Fee aspect, and Jeff Strain said himself that they make less money per player.
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| 05/09/06 09:29 |
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One Swordsman
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| RE: NCSoft profits plunge! |
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Does anyone know if any other NCsoft games are free like Guild Wars?
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| 05/09/06 10:14 |
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lunaticmo1
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| RE: NCSoft profits plunge! |
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| QUOTE | | Does anyone know if any other NCsoft games are free like Guild Wars? |
City of Heros cost monthly that i know of, cause me and my stepdad play gws cause its free, we would be playing City of Heros if it was free...
EDIT: i also came to gws cause it was free, i really dont like paying $30+ for a game, then turning around and paying $10+ per month just to play that game... just dont like it...
***THIS POST HAS BEEN EDITED***
Acoomplished at 12:19am October 16th 2006
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| 05/09/06 12:53 |
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Nogame
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| RE: NCSoft profits plunge! |
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This is bound to happen after a very successful year of the release of many MMO's. Profits will increase within the next year or two as you see records of Factions being purchased and other games such as Tabula Rasa are released.
As far as being as popular as a pay-to-play MMO… It all depends on the MMO. On a scale of content Guild Wars simply could not compete with WoW however games such as City of Heroes don't have a great deal of content, they're just fun. It's the experience you get in those pay-to-play games that make it more enticing then a completely instanced world such as Guild Wars. Though its hard to pinpoint why, there's just a certain cool factor of you doing something in some deep, dank dungeon and people come can join or leave you and your group at will. Instanced game play as it is offered in GW will not allow such occurrences.
On the topic of other free MMO's on the horizon, I believe 'Dungeon Runners' will be a topic of discussion at E3 this week. It's another NC Soft title and I do believe it may be non-subscription based.
***THIS POST HAS BEEN EDITED***
Mason 'Nogame' Ambrose
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| 05/09/06 13:09 |
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thejeni
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| RE: NCSoft profits plunge! |
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Actually I don't know if I would use the word "plunge" for their profits. You can find their Earnings release on their official site here. If you download the 1Q FY2006 Earnings Release you will get to see the following page. You can do your own comparison and decide plunge or no.
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| 05/09/06 13:58 |
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Me Norel
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| RE: NCSoft profits plunge! |
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I keep seeing the pay for free statement, which to some it will be quite true, but to most of us addicted players (e.i. ME), and the possibility of ANet to release quality series in the GW game series every 6 months, at $50 US, every six months that comes to $8.33 US a month.
Given this is lower than most MMO pay to plays for subscription but it's still a subscription rate so to speak, which you can purchase bulk subscriptions from any of the other MMO's.
The only reason I am not intrested in WoW is keeping up with weather I sent in my payment or if my 6 months is up and do I have the money free for the next six months that I can still play when it runs out. Plus the game is just not visually apealing to me (to cartoonish).
Looks to me like Q2 will tell the tell as well as the next release of GW coming supposedly sometime early winter around November. Can't wait to here what the theme will be for it, hope it falls somewhere around a Mediteranian them Greek/Roman mythology.
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| 05/09/06 20:46 |
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darkparadox
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| RE: NCSoft profits plunge! |
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I have to say, I'd quit Guild Wars altogether if you had to pay a monthly fee. That was one of the most aspiring aspects of the game to me.
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| 05/09/06 20:55 |
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Bubbada Muse
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| RE: NCSoft profits plunge! |
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i think ANET decided not just to experiment with releasing guild wars and not making int ptp(pay to play). But also i think ANET was taking a stand at the ever climbing ammount of ptp games out there. I know that they have ptp games but i think that guild wars was really to show that you can have a popular and fun mmorpg without making it ptp. That said i do agree that ptp games do have more content but i think in the long run Guild Wars will be more remembered for the fact that it is revolutionizing the mmorpg world by showing that putting in stuff that is not what you would find in any other mmorpg that is set in the same fantasy type setting like WoW can actually make your game more interesting.
Oh and one last thing. Where are the trade improvements promised by anet? any word on when they are going to be put into play?
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| 05/09/06 21:13 |
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Brynden
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| RE: NCSoft profits plunge! |
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I think Anet is probably a bit behind right now. I mean, they are having to work out all the bugs in factions as well as trying to update all this stuff. There are a lot of people that are getting pissed about buggy missions, as well as a lot of people getting angry about these things they promised. I say just wait patiently, it will come eventually.
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| 05/09/06 21:19 |
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One Swordsman
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| RE: NCSoft profits plunge! |
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| QUOTE | Oh and one last thing. Where are the trade improvements promised by anet? any word on when they are going to be put into play?
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#
I await patiently for the day trade improvements come
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| 05/10/06 03:02 |
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mriswith
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| RE: NCSoft profits plunge! |
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| QUOTE | | Agreed! And to keep that purchase-only fee, we all need to do our part: introduce your friends and family to GW! Buy the collector's edition! Get the official guide book to the game! Whatever it takes, really: it's still going to be less expensive than a monthly subscription fee. |
^.^ I have the prophesies special edition & CE; Factions retail version + CE ; and the official guidebook; and im getting at least 2 extra characterslots this summer. Can i get a stamp on my guildcape or herotitle saying 'official sponsor of Anet & NCSoft' ? ;p
necromancer all the way
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| 05/10/06 03:48 |
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lani
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| RE: NCSoft profits plunge! |
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NCSoft's plunge is not a plunge across the entire board.
They did take a hit, can I call 49% a hit? in Europe and the US. But, ss about 60% of NCSoft's profit comes from their own nick of the woods, the total effect is a lot less.
I think you should read this more as an indication of poor MMOG sales in the EU & US over Q1-2006 in general (not just NCSoft but most others too). GW and AA missed the Q1 boat altogether, so the boost of GW sales is not in there. NCSoft won't go tits up this Quarter :-)
In some ways it's too bad GW has no monthly subscription as you can't tell what the churn is for the game. There was a noticeable drop off of players during Q1, though how much can't easily be established through sales figures. With a monthly subscription you can run the figures on boxes sold and subscriptions paid / terminated.
Monthly subscriptions are not bad.
Generally they come with games that have atleast some kind of persistent world. Even CoH/V has that. GW is all instances and start-up lobbies. There's up- and down-sides to a persistent world of course. But overall it gives one more of a feeling of belonging in a world and a sense of affecting that world. With GW you know that once you finish a Mission it's reset and nothing has changed really except for your character.
Another thing that subscriptions pay for is infrastructure. ArenaNet saves a lot of money using instances (a persitent world takes more resources and therefore money). But I think everyone can confirm that Factions has some lag issues regardless. The instancing doesn't scale as perfectly to current volumes of players in Factions as we'd like.
Now add in quality support, though even most pay-per-month MMO's are less than ideal on the quality. ArenaNet stopped doing their own support in favor of NCSoft's global support because they did not get enough work in that area as they claim. Oddly enough, response and resolution times went from days and weeks to hours and days respectively. NCSoft has a larger scaled support organization and that's cheaper than ArenaNet could do on their own and provides better quality. That organization was initially paid for through the cash flow of NCSoft's monthly subscriptions games.
Finally add continuous development, (exploit) balancing and abuse dealing to what a monthly subscription pays for. GW isn't exactly winning prizes on that. They delivered their first paid expansion fully a half year behind schedule (six-month expansion release was first announced before Prophecies itself got released). They did add some additions to the Prophecies campaign over time. Sorrow's Furnace and the Tomb of Primeval Kings makeover. Balancing (what people call nerfing here) could be a better. Dealing with abuse, bot-farming and such could be a lot better. Those things cost money though which ArenaNet doesn't have a lot of.
Which leads me to the other point I was going to point out. Sorry, bit of a rambler :-)
The much asked for, highly anticipated trade improvement. ArenaNet's been hinting at it for months. Developping such a thing after release is rather costly though. If they truly decided to do something along the lines of auction houses or other in-game trade mechanism, I wouldn't be one bit surprised if it's planned after initial revenues from Factions come pooring in. It's always best to propose/start costly projects while the cash is pooring in :-)
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| 05/10/06 05:37 |
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Sunrunner
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| RE: NCSoft profits plunge! |
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It would really depend what the montly fee is, but if the content was exactly the same they would be cheating us, because they dont require a monthly fee to upkeep their 1 server, so I would definitly expect multiple servers for a monthly fee and thus a somewhat different game.
same content + no monthly fee = guildwars
same content + monthly fee = stupid
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| 05/10/06 06:22 |
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lani
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| RE: NCSoft profits plunge! |
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Make that (less content + less features + Not Massive Multiplayer) + no monthly fees = Guild Wars.
Not sure what you mean by "one server" here.
Guild Wars doesn't use the server model at all. They instanced everything, which allows for a lot of load-balancing. They have Territories, which are linked to (several I suspect) Hosting locations.
The Server model is a requirement for a persistent world. But a single server does not mean a single machine necessarily.
Btw. I'm not trying to make GW out to be a bad game. Comparing Guild Wars to any MMORPG is compairing an Apple to a Pear. Both fruit, but other than that, completely different in shape, size and taste.
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| 05/10/06 06:46 |
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One Swordsman
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| RE: NCSoft profits plunge! |
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| QUOTE | Make that (less content + less features + Not Massive Multiplayer) + no monthly fees = Guild Wars.
Not sure what you mean by "one server" here.
Guild Wars doesn't use the server model at all. They instanced everything, which allows for a lot of load-balancing. They have Territories, which are linked to (several I suspect) Hosting locations.
The Server model is a requirement for a persistent world. But a single server does not mean a single machine necessarily.
Btw. I'm not trying to make GW out to be a bad game. Comparing Guild Wars to any MMORPG is compairing an Apple to a Pear. Both fruit, but other than that, completely different in shape, size and taste. |
Agreed + cred
I love Guild Wars for many reasons. But if they started charging a monthly fee for the same game we are getting now, I wouldn't pay; simply because the level of content and features are not worthy of a fee.
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| 05/10/06 06:53 |
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Sanctus_Vir
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| RE: NCSoft profits plunge! |
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Migh pay 5 bucks per month but not anything more. I'd just switch over to WoW than.
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| 05/10/06 07:28 |
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sysfailur
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| RE: NCSoft profits plunge! |
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This is nothing compared to SOE's gaming division (SOE runs Star Wars Galaxies).
Check this out.
This is from their gaming division in the US.
More screens of the travesty known as SWG can be found here:
Sony Sucks.
***THIS POST HAS BEEN EDITED***
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| 05/10/06 08:01 |
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One Swordsman
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| RE: NCSoft profits plunge! |
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ROFL
Yeah but SoE completely destroyed SWG... they made it so buggy, deleted half the classes, nerfed everything, made Jedi's available from the offset, nerfed tradeskills. They ruined what was a nice community, and what had the potential to be a great MMO, especially with a fanbase like Star Wars'.
I was going to start playing it until I heard they messed it up, a real disappointment.
I have a flannel to wash my face
if it gets mucky i feel disgraced.
Do you like horlicks, do you like chips.
I'v got 100 pairs of lips
- Gotta love the Warlock forums xD
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| 05/10/06 08:09 |
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lani
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| RE: NCSoft profits plunge! |
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Exactly what is so terrible about 66 million dollars (and change)? That's 5.5 Million dollars a month. So that's above 300.000 subscribers.
Not bad for most MMO's, but for something bearing the name Star Wars it's not that great either. Still, nine out of ten MMO's don't reach those lofty heights of 300K players. And given that George Lucas has been doing his best to screw up the Star Wars Extended Universe, you really can't blame Sony Entertainment for doing so as well.
After all, they're only doing as the Master does himself.
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| 05/10/06 08:23 |
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One Swordsman
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| RE: NCSoft profits plunge! |
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| QUOTE | And given that George Lucas has been doing his best to screw up the Star Wars Extended Universe, you really can't blame Sony Entertainment for doing so as well.
After all, they're only doing as the Master does himself. |
Quite true, but the game was pretty thriving before they introduced the NGE (New game enhancement), a patch that was so buggy and untested, that it completely destroyed the game and scared all the players off (hey, sounds a bit like SW: Episode 1 =P).
I have a flannel to wash my face
if it gets mucky i feel disgraced.
Do you like horlicks, do you like chips.
I'v got 100 pairs of lips
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| 05/10/06 08:28 |
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sysfailur
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| RE: NCSoft profits plunge! |
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I played SWG up until the realease of GW when SWG had the *first* combat revamp. It was bearable but not as good as the old system. Publish 9, 10, 11 was the peak of the game imo. CU1 made it worse, NGE killed it, and now they have a THIRD combat "revamp" which is reverting to old features and they're calling it new.
FSCK SOE! I was a Pre-Pub9 jedi.. aka the oldschool jedi where permadeath was around. Back then it was actually cool to have a jedi. Not many did and it was risky as all hell playing one. If you died 3 times in a week you lost the character forever! No other game ever has had something like that and I really wish they kept it. But oh well, SOE just wanted money. And I'm sure they got it.
The game is dead but the fun memories live on... and now I have GW to play. :D
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| 05/10/06 08:51 |
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Jeremy1973
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| RE: NCSoft profits plunge! |
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One reason I play GW and Factions is because it is free. I use to love playing Final Fantasy 11 (monthly fees), and loved City of Heroes (monthly fees), but I just can't afford to be dropping $120-$168 a year for a game that I paid $50 for. I have greatly enjoyed GW and Factions.. and if other games like CoH was free, I would play that to, because I loved my hero that I created. heh heh
Now, if fees (for the other games) changed to maybe $5/mos. I would be more willing to pay to play. But free is still best. heh heh
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| 05/10/06 08:52 |
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One Swordsman
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| RE: NCSoft profits plunge! |
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The thing is, I dont actually mind paying a fee for a game that utilizes that fee.
Example: I pay £8.99 a month for WoW, every 1 and a half months (ish- =P) they release a new patch, each patch a major new feature is added, e.g. in the next patch they are adding a huge 18 boss 40-man raid dugeon... and they are revamping some classes to make them more effective.
I dont mind paying a fee if I can see the improvements happening, and that justifies it.
In Guild Wars, we've had very little in the way of free live updates, except from Sorrow's Furnace and TOPK, but again I accept that as they don't charge me a fee, and at the end of the day very few things in life are free =D
I have a flannel to wash my face
if it gets mucky i feel disgraced.
Do you like horlicks, do you like chips.
I'v got 100 pairs of lips
- Gotta love the Warlock forums xD
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| 05/10/06 09:01 |
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magnetic mage2
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| RE: NCSoft profits plunge! |
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i don't necessarily play guild wars non-stop, every evening. Thats how i like it. Guild wars isn't (as it says on the lable) a game where you spend 100s and 100s of hours training up 1 character. Its versatile. i go there for a chat with my firends (provided theres sme PvP involved too) or just to test some ridiculous build in PvE. I think a monthly fee would not necessarily destroy that, but not give the game an atmosphere that suits it, if that makes sense. I mean theres not that much out there that is great fun, free, and has OK graohics.
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| 05/10/06 13:01 |
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Bubbada Muse
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| RE: NCSoft profits plunge! |
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i think the reason many people pick on guild wars is that it isnt much like WoW. I believe that many people expected guild wars to be alot like WoW but when Guild Wars came out they were disappointed or played it for a little bit and then put out by the gameplay. I also believe that to many people try to compare the games to each other, these games really are not alike at all. Guild Wars is an experiment where great concepts were put into the game and bad mmorpg concepts were taken out.
I do not belive that when Anet started thinking about creating guild wars they were trying to target the WoW players (this is pretty aparent) but instead wanted to "test" the waters with this new revoultionary game that in the long run will probably not be classified as a mmorpg but put into some other class that isnt around as of this date. I think the main reason that i am put off by games like WoW is the monthly fee. Just in principle alone i cannot see the logic in paying every month for a game you already purchased when you are not getting anything out of it other than entertainment.
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| 05/10/06 13:37 |
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blackphoenix
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| RE: NCSoft profits plunge! |
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| QUOTE | | Exactly what is so terrible about 66 million dollars (and change)? |
Actually, it says that column is dollars in millions, which means 66,000 million dollars is actually 66 billion dollars (and change).
Anyway, that's still a heck of a lot of money.
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| 05/10/06 13:57 |
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