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NCsoft Q4 2019 Financial Results: Mixed Bag
NCsoft’s fourth-quarter 2019 financial results present a mixed picture for the publisher. Revenue rose 34% compared to both the previous quarter and the same period in 2018, but full-year 2019 revenue slipped approximately 1% versus 2018, suggesting that strength in Q4 could not entirely compensate for weaker performance earlier in the year. The company’s mobile division was the standout performer, posting a 59% revenue increase year-over-year in Q4, driven largely by the continuing success of the Lineage franchise. Lineage I and Lineage II each recorded year-over-year revenue gains of 24% and 25% respectively, reinforcing the staying power of these IPs in Asian markets.
Conversely, NCsoft’s three primary western-MMO titles all suffered significant revenue contractions during the quarter. Aion dropped 36% year-over-year, Blade & Soul fell 28%, and Guild Wars 2 declined approximately 25% compared to the same period in 2018. Guild Wars 2 had maintained relatively stable revenue throughout 2019, but its fourth quarter represented the worst quarterly performance in the game’s history, even as a new season of content launched in the fall. These declines are particularly notable given that the western MMO segment has been a key strategic focus for NCsoft.
Community reaction to Guild Wars 2’s downturn has been concentrated on the game’s subreddit, where players have pointed to content pacing, the mixed reception of the “saga” narrative arc, and the lingering impact of layoffs at ArenaNet in early 2019 as potential causes. An external competitive factor may also be significant: Blizzard’s World of Warcraft Classic launched in August 2019 and doubled World of Warcraft’s active playerbase during that period, likely drawing players away from alternatives such as Guild Wars 2, Blade & Soul, and Aion.
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