NCSOFT's 'Blade & Soul 2', which launched its services in China this month, is receiving positive responses. NCSOFT aims to accelerate its global expansion by starting with its entry into the Chinese market and leveraging its intellectual property (IP). This has led to growing expectations for a rebound in performance. Analysts predict that NCSOFT could achieve profitability this year.
According to global app market analysis firm Sensor Tower on the 7th, NCSOFT's MMORPG (Massively Multiplayer Online Role-Playing Game) Blade & Soul 2, launched in China on the 3rd in partnership with Tencent, has reached 5th place in popularity rankings and 2nd place in the RPG popularity rankings on the Chinese Apple App Store. The game ranked first immediately after its release but has seen a slight drop in rankings since then. However, it appears to be maintaining positive indicators in the early stages after launch, with an overall ranking of 49th and 16th in the RPG ranking.
Blade & Soul 2 is a sequel to the PC online game 'Blade & Soul', launched by NCSOFT in 2012, with domestic services starting in 2021. NCSOFT has been preparing for its services in China after obtaining a license to operate Blade & Soul 2 from the Chinese government. In collaboration with Tencent, NCSOFT conducted three rounds of beta testing before the official service in China, focusing on localization. The game has incorporated numerous features favored by Chinese users, such as improved control convenience, revamped user interface (UI) usability, and mobile optimization.
The gaming industry is watching closely to see if Blade & Soul 2 can become a saving grace for NCSOFT as it settles into the Chinese market early in its service. The company recorded an operating loss of 109.2 billion won last year, marking its first annual deficit in 26 years. According to the Korea Exchange, as of the closing price on the 4th, NCSOFT's stock price was 153,100 won, down 16.3% this year alone. NCSOFT has been undergoing difficult times, implementing large-scale organizational restructuring, including voluntary retirements and studio spin-offs last year.
NCSOFT has expressed its intention to expand globally using its existing IP, starting with Blade & Soul 2. On the 20th of next month, the mobile MMORPG 'Lineage 2M' will be launched in six Southeast Asian countries: Vietnam, Thailand, Malaysia, Indonesia, Singapore, and the Philippines. Earlier, NCSOFT established a joint venture, NCV Games, with its Southeast Asian partner VNG Games, which will handle local services. All users in the respective countries will have a gaming environment to enjoy Lineage 2M on a single server.
As NCSOFT is poised to intensify its global expansion this year, there is keen interest in whether its performance will rebound. According to NCSOFT's annual report last year, Lineage 2M generated 182.6 billion won in revenue, a decrease of 31% compared to the previous year, while Blade & Soul 2 earned 17.1 billion won, a 38% decline year-on-year. There is also focused attention on new releases; NCSOFT plans to launch four new titles this year, including the much-anticipated 'Aion 2'.
The outlook from the securities industry is positive. According to financial information provider FnGuide, NCSOFT is expected to achieve operating profits of 12.7 billion won and 11.8 billion won in the first and second quarters, respectively. It is projected that the company's annual operating profit will turn positive at 90.5 billion won this year, compared to the previous year.
An industry insider noted, "NCSOFT is gearing up for a full-scale global offensive, focusing particularly on China and Southeast Asia this year," adding, "Success in the global market this year is expected to be a significant turning point for NCSOFT's performance."