Support NeoGAF

[UbiSoftologist]

Source: GamerFeed (http://pc.gamerfeed.com/gf/pr/8272/)

NCsoft Profits Skyrocket in 2004

Company makes more won than stars in the sky

South Korea-based NCsoft recently revealed that their annual profits for 2004 more than doubled. The publisher booked a net profit of 77.7 billion won (US $75.6 million) in 2004, which is a significant increase over above the 31.6 billion won (US $30.2 million) net profit posted a year earlier. Strong sales growth locally and in foreign markets helped deliver these results. Full-year operating profit jumped 97 per cent to 109 billion won (US $106.3 million), while sales rose 48 per cent to 246.8 billion won (US $240.8 million) according to NCsoft.

Specializing in MMORPGs, the company is best known for such titles as Lineage II, City of Heroes and the upcoming Guild Wars.

 

[goodcow]

Wow, the won is worth shit.

 

[Andrew2]

Here's some food for thought. Asia boast a good concentration of MMORPG players. Factor that in with the profiting potential a MMORPG make and you can guess why SOE,SEGA,Square-enix and other MMORPG operators want to move into the terriroty badly.

 

[Pellham]

how are popular MMORPGs not profitable? Look at Ragnarok Online, which has several million subscribers worldwide. That's a crapload of money.

 

[Zaptruder]

The real problem is been washed by the wayside... the market can only support so many successful MMORPGs at once... and unless you've got something super special, like FF name or Warcraft name, you'll have to steal players from the competition.

 

[Fafalada]

That's one reason why a lot of companies are turning to chinese and other markets now which tend to be still pretty untapped.
Still, should note that MMORPGS make up like 99% of gaming products in Korea, so obviously there's more then one company making profit off them. Though NCSoft is in a league of its own of course.

 

[Andrew2]

The real problem is been washed by the wayside... the market can only support so many successful MMORPGs at once... and unless you've got something super special, like FF name or Warcraft name, you'll have to steal players from the competition.

Once EverQuest 2 and WoW move into asia,I expect NC to really put up a fight to defend its turf. Right now,I'am a bit curious about how Shenmue Online and The Matrix Online is going to be recieved in asia.

 

[Fafalada]

I figure Shenmue will probably flop outside Japan. Matrix - who knows, I can't understand the appeal at all, but then many people don't understand Lineage 2 appeal either and look at it go...

 

[Phoenix]

Blizzard is pulling in millions per month, I think we all know how profitable it can be

 

[Foobar]

MMORPGs are a special case in online gaming since they have a subscriber base to draw monthly fees from, in essence, software sales are really just a bonus when you have a healthy, loyal group of subscribers.

Peer-to-peer games have a much more difficult time as there is no subscription to draw from, just the sales of software and any incentives a platform exclusive may give them. Software sales are a must here, its make or break to maintain support of the game long term if it doesn't sell, that is unless you have someone willing to pick up the tab for running severs, much like MS and Xbox Live do.

Guild Wars will be profitable because of the success they've had with Lineage II and CoH. Loyal fants will come out in force to support it and it will profit. But a game like EQOA, that one only lives out of the kindness of Sony's heart, come PS3 it will be dropped like a hot rock, they'll never see another expansion because the subscriber base is too low and the cost of maintaining a server no one plays on is too expensive.

But then, EQOA was really just an low-grade alpha version of EQ2 Sony made people pay to play :lol

 

[Zaptruder]

I figure Shenmue will probably flop outside Japan. Matrix - who knows, I can't understand the appeal at all, but then many people don't understand Lineage 2 appeal either and look at it go...

Have you seen those dark elves ta-tas?

 

[ManaByte]

The business model for MMORPGs in Korea is very different than in the US. People pay higher monthy fees ($25+ is usually on the low end) and they just download the games.