NCSoft, a prominent player in the gaming industry, finds itself navigating turbulent waters as it grapples with a notable decline in revenues. Following a peak in 2022, the company’s financial performance has sharply declined, with 2024 revenues dipping below levels seen in 2017. The stock price has mirrored this downturn, plummeting by 71% over the past five years.
Shifting Landscapes in Gaming
The transition from traditional PC gaming to mobile platforms has initially sparked a surge in revenues. However, this shift has come at a cost, as profitability has taken a hit due to substantial platform fees imposed by giants like Apple and Google. In contrast, NCSoft’s legacy MMOs, such as Lineage and Lineage 2, enjoy a unique advantage, having been established before the rise of platforms like Steam, which allows them to bypass these fees.
While the initial move to mobile games resulted in a revenue boost, the long-term profitability of mobile MMORPGs has proven to be elusive. Unlike enduring titles such as World of Warcraft, RuneScape, and Eve Online, which have maintained consistent profitability for decades, many mobile MMORPGs struggle to remain relevant beyond a few years.
The rapid decline of NCSoft’s PC gaming segment is particularly striking. Currently, a single mobile title, Lineage M, generates more revenue than all of NCSoft’s PC games combined. This trend was even more pronounced in 2022 when Lineage W alone brought in nearly three times the revenue of the entire PC game portfolio. However, the revenue from Lineage W has also seen a significant downturn since its peak.
Despite the promising launch of Throne and Liberty, the game’s player base has dwindled swiftly, raising concerns about its long-term viability. NCSoft has not experienced a major hit since the mobile launches of Lineage 1 and Lineage 2. The upcoming release of Aion 2, anticipated in the latter half of 2025, may offer a glimmer of hope, but given the company’s recent trajectory, expectations for success remain tempered.
