This article first appeared on GuruFocus .
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Revenue:KRW360 billion, down 6% QoQ and 10% YoY.
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Operating Loss:KRW7.5 billion, impacted by weaker sales and one-time severance payments.
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Net Income:KRW347.4 billion, including a gain from the sale of NC Tower.
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Mobile Game Sales:KRW197.2 billion, down 10% sequentially.
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Lineage M Sales:Down 13% QoQ.
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Lineage 2M Sales:Down 2% QoQ, up 9% YoY.
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Lineage W Sales:Down 9% sequentially.
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PC Online Game Sales:KRW87.7 billion, down 4% QoQ, up 9% YoY.
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Royalty Sales:KRW46.8 billion, up 11% QoQ and 23% YoY.
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Operating Costs:KRW367.5 billion, flat QoQ, down 12% YoY.
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Labor Costs:KRW199.4 billion, up 5% sequentially.
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Marketing Spend:KRW16 billion, down 32% QoQ and 67% YoY.
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Depreciation Expenses:KRW21.4 billion, down 13% QoQ and 19% YoY.
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Release Date: November 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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NCsoft Corp ( XKRX:036570 ) reported a significant gain of KRW355.9 billion from the sale of NC Tower, contributing to a strong net income of KRW347.4 billion.
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PC Online game sales increased by 9% YoY, marking the second consecutive quarter of YoY growth, driven by strong performance from Lineage 1 and Guild Wars 2.
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Royalty sales rose by 11% QoQ and 23% YoY, with overseas and royalty sales comprising 40% of total sales, indicating successful international expansion.
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The company is set to launch AION 2, a highly anticipated title, which is expected to broaden the MMO player base and enhance global market presence.
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NCsoft Corp ( XKRX:036570 ) is focusing on cost management, with operating costs down 12% YoY and marketing expenses reduced by 67% YoY, reflecting effective financial strategies.
Negative Points
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Q3 sales declined by 6% QoQ and 10% YoY, primarily due to a decrease in sales from live service games.
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The company reported an operating loss of KRW7.5 billion, impacted by weaker sales and one-time severance payments.
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Mobile Game sales fell by 10% sequentially, with Lineage M sales down 13% QoQ, indicating challenges in maintaining mobile game revenue.
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Labor costs increased by 5% sequentially due to project cancellations and workforce optimization, leading to one-time severance payments.
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Depreciation expenses decreased by 13% QoQ and 19% YoY, but the reduction in server asset depreciation may not be sustainable long-term.
Q & A Highlights
Q: Can you provide more details on the MMORPG to be unveiled at G-Star, particularly regarding its release date? A: Byeong-Moo Park, Co-CEO, stated that the development of the MMORPG has progressed significantly, and it could be launched either next year or the year after. However, the specific release date will be discussed with the IP holder. The game is well-received internally, and more details will be available at G-Star.
Q: What is the expected user base for AION 2, and how has the preregistration been received? A: Byeong-Moo Park mentioned that preregistration numbers exceeded expectations, although specific figures were not disclosed. The preregistration events were conducted in Korea and Taiwan, with high engagement. Feedback from Western users was promising, and the game is expected to launch globally in the second half of next year.
Q: When will the proprietary payment system for mobile games be implemented, and which games will it apply to? A: Byeong-Moo Park explained that the proprietary payment system has been tested on smaller games and will be applied to major titles like Lineage M and Lineage 2M starting tomorrow, with Lineage W following at the end of November. AION 2 will use this system by default upon its launch.
Q: How will NCSoft balance the lighter business model of AION 2 with potential sales concerns? A: Byeong-Moo Park stated that the lighter business model aims to secure a larger user base. The success of TL, which achieved significant sales with a high user base and retention, serves as a reference. AION 2's extensive open-world content is expected to maintain high retention rates.
Q: What are the target audiences for AION 2, and how does it differ from other mobile MMORPGs? A: Byeong-Moo Park indicated that AION 2 targets younger audiences who prefer shorter play times. The game offers a mix of PvE and PvP experiences, catering to different player preferences. AION 2 is distinct from AION Mobile, which is a separate title being co-developed for the Chinese market.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
