NCsoft Financial Decline Q1 2025 - Key Insights

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NCsoft faces a troubling financial decline in Q1 2025, with a 12% revenue drop, largely due to setbacks in mobile gaming.

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The financial landscape for NCsoft during the first quarter of 2025 has revealed some troubling trends, as outlined in their latest quarterly report.


The company experienced a significant revenue decline of 12% from the previous quarter and a 9% drop compared to the same period last year.


This downturn follows a challenging year marked by a major organizational restructuring and layoffs, aimed at preventing the company from entering a cycle of persistent losses.


NCsoft's mobile gaming segment has been primarily responsible for these financial setbacks, particularly since the PC segment had shown a robust performance in the fourth quarter of 2024.


However, this positive trend for PC games has now reversed, with reported sales from legacy online PC games plummeting by 11% quarter-over-quarter.


Focusing on Guild Wars 2, the game's revenue has reverted to levels seen prior to the Janthir Wilds expansion, which aligns with the trend of earning the majority of expansion-related income in the fourth quarter.


Additionally, the game's performance has not matched that of Q1 2024, raising concerns about its trajectory in the second year of its new content model.


Meanwhile, other titles such as Lineage 2 and Aion also faced declines in revenue during this quarter, although Blade & Soul is experiencing a revival thanks to its BNS Neo update.


Throne & Liberty remains absent from the revenue charts, but NCsoft has been categorizing its earnings under royalty sales, which saw a substantial drop of 39% quarter-over-quarter, although it rose 38% year-over-year, reaching 45.0 billion KRW.


During the recent investor call, NCsoft hinted at further layoffs, particularly within its overseas subsidiaries, despite having previously made significant investments in expanding its global presence.


The company sidestepped inquiries regarding global sales for Throne & Liberty, while reaffirming that Aion 2, along with two other titles, is still in the pipeline.


Anticipation builds for more details on Aion 2 in the upcoming broadcast scheduled for May 29, although there are cautions regarding potential pay-to-win elements, as acknowledged by NCsoft's Byeong-Moo Park.


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In the latest developments for NCsoft, the company has announced the conclusion of the Janthir Wilds update for Guild Wars 2 as they prepare to unveil Aion 2's release date.


Throughout 2024, NCsoft has seen positive outcomes with both Guild Wars 2 and Blade & Soul, while Aion 2 remains on the horizon, eagerly awaited by fans.


There are whispers circulating that NCsoft may have decided to cancel its unannounced MMO project, Horizon.


In an interview, Jeonghee Jin, the new CEO of NCsoft America, expressed ambitions to invigorate the company’s presence in the Western market, referring to it as a 'sleeping giant.'


Additionally, the MMO developer has entered into agreements to publish a 'time survival' shooter and a medieval strategy RPG, diversifying their portfolio.


Earlier in 2024, NCsoft hinted at the upcoming Aion 2, projecting its release for 2025. They also reported that sales for Throne & Liberty exceeded their initial expectations.


However, not all news is positive; the company announced that the MOBA, Battle Crush, will be discontinued in November, having never transitioned out of early access.


Internally, NCsoft Korea is undergoing significant restructuring and layoffs, leading to a rebranding of the Throne & Liberty team as Studio X.


The company has experienced a series of disappointing revenue quarters, prompting this restructuring initiative.


In second quarter reports of 2024, NCsoft reaffirmed its commitment to MMORPGs, despite the delays affecting Throne & Liberty.


Looking back at the first quarter of 2024, Guild Wars 2 has enjoyed a remarkable revenue streak, even as Throne & Liberty faced setbacks.


At a recent shareholder meeting, there were tensions, with reports indicating that ArenaNet is actively developing Guild Wars 3.


In the fourth quarter of 2023, Guild Wars 2 stood out as a beacon for NCsoft amidst the challenges faced by Throne & Liberty.


As we review past quarters, it’s clear that mobile MMOs are contributing to NCsoft’s struggles, overshadowing the performance of traditional PC titles.


In fact, the second quarter of 2023 saw delays for Throne & Liberty, alongside declining revenues in mobile games and MMORPGs.


The first quarter of 2023 confirmed further postponements for Throne & Liberty, pushing its launch to the latter part of the year.


Reflecting on 2022, Guild Wars 2 performed admirably, while Throne & Liberty remained on track for a summer debut.


The third quarter of 2022 showcased Lineage W driving quarter-over-quarter revenues, with Guild Wars 2 also performing well.


Throughout 2022, despite some delays, Aion 2 remained in development, and Guild Wars 2 continued to thrive.


The financial landscape for NCsoft has seen fluctuations, with previous years highlighting a mix of successes and challenges across their various titles.


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