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NCsoft Q2 2014 Earnings report is in... not pretty...

caetftlcaetftl Member Posts: 358

http://global.ncsoft.com/global/ir/earnings.aspx

 

Can anet do anything to generate new interest in the game?  The launch in china didn't seem to go as well as many had claimed (one guy even make a thread on this forum about it selling 3.8million accounts when it was actually 3.8million characters created)

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Comments

  • BladestromBladestrom Member UncommonPosts: 5,001
    3.8 million chars created, omg.

    rpg/mmorg history: Dun Darach>Bloodwych>Bards Tale 1-3>Eye of the beholder > Might and Magic 2,3,5 > FFVII> Baldur's Gate 1, 2 > Planescape Torment >Morrowind > WOW > oblivion > LOTR > Guild Wars (1900hrs elementalist) Vanguard. > GW2(1000 elementalist), Wildstar

    Now playing GW2, AOW 3, ESO, LOTR, Elite D

  • AreWeLiveAreWeLive Member UncommonPosts: 202
    well the good news is right now gw2 is 50% off. Go to their site, click on the buy now and get it for $25...it is worth $25...
  • jpnzjpnz Member Posts: 3,529

    40% down is 40% down.

    It paid itself several times over so the product was a success though.

    But with those figures I suspect someone at NCSoft or ANet (probably both) are going 'Expansion! NOW!'

    Gdemami -
    Informing people about your thoughts and impressions is not a review, it's a blog.

  • DamonVileDamonVile Member UncommonPosts: 4,818

    Why do people look at 1 quarter and try and spin it like it means something. Do these companies not have ups and downs depending on what game just launched are they starting development on something new have they just spent a fortune advertising a new mmo...etc.etc.

     

  • aesperusaesperus Member UncommonPosts: 5,135

    Sigh, more people who apparently don't know how to read quarterly reports.

    NCSoft is actually up this quarter, though in some areas they are slightly down from last year. While GW2's sales are down this quarter, the games ~3 years old now. It shouldn't be that shocking that it's profits have dropped since launch. The fact that it's still selling as much as it is, is actually a good thing. Will NCSoft push for more? Probably, and tbh an expansion for the game would be a good thing.

    As was said by Kano, if anything this is more telling of Wildstar's performance. For a new game it's numbers aren't nearly as good as they should be.

  • jpnzjpnz Member Posts: 3,529
    Originally posted by aesperus

    Sigh, more people who apparently don't know how to read quarterly reports.

    NCSoft is actually up this quarter, though in some areas they are slightly down from last year. While GW2's sales are down this quarter, the games ~3 years old now. It shouldn't be that shocking that it's profits have dropped since launch. The fact that it's still selling as much as it is, is actually a good thing. Will NCSoft push for more? Probably, and tbh an expansion for the game would be a good thing.

    As was said by Kano, if anything this is more telling of Wildstar's performance. For a new game it's numbers aren't nearly as good as they should be.

    This post is factually false.

    GW2 was release on the 28th of Aug, 2012 which means it is TWO years old, not 3 years.

    I don't think anyone is shocked that GW2 performance is going down, esp since it is a B2P game but 40% is 40%.

    Gdemami -
    Informing people about your thoughts and impressions is not a review, it's a blog.

  • cheyanecheyane Member LegendaryPosts: 9,404
    In the end I did not like the combat in Wildstar I wish it was a tab target game all that jumping around and trying to heal in a dungeon was just not for me. Pity because the game was beautiful and I liked the lore very much. Wish they changed the combat .I am playing FFXIV ARR now and I am much happier than trying to force my old hands into being more agile.
    Garrus Signature
  • NaqajNaqaj Member UncommonPosts: 1,673
    Originally posted by caetftl  The launch in china didn't seem to go as well as many had claimed

    NCsoft doesn't sell the game in China, KhongZhong does. Therefore revenue from the chinese launch is listed under royalties, not under sales. So whatever you think you're seeing there indicating an unsuccessful launch in china, you may want to look again.

     

     

  • stevebombsquadstevebombsquad Member UncommonPosts: 884
    Originally posted by Naqaj
    Originally posted by caetftl  The launch in china didn't seem to go as well as many had claimed

    NCsoft doesn't sell the game in China, KhongZhong does. Therefore revenue from the chinese launch is listed under royalties, not under sales. So whatever you think you're seeing there indicating an unsuccessful launch in china, you may want to look again.

     

     

    The amount of royalties dropped from Q1 to Q2..........

    James T. Kirk: All she's got isn't good enough! What else ya got?

  • NaqajNaqaj Member UncommonPosts: 1,673
    Originally posted by stevebombsquad

    The amount of royalties dropped from Q1 to Q2..........

    Yep. Those include a lot more than just GW2 China. Several other games that NCSoft licensed  are in there and they had a very strong Q1, and decidely less strong Q2.

    My point wasn't that the numbers say GW2 had good sales in China. My point was the numbers don't really tell us anything about GW2 sales in China.

  • azarhalazarhal Member RarePosts: 1,402
    Originally posted by Naqaj
    Originally posted by stevebombsquad

    The amount of royalties dropped from Q1 to Q2..........

    Yep. Those include a lot more than just GW2 China. Several other games that NCSoft licensed  are in there and they had a very strong Q1, and decidely less strong Q2.

    My point wasn't that the numbers say GW2 had good sales in China. My point was the numbers don't really tell us anything about GW2 sales in China.

    Adding to this, we don't know how the royalties might be working for each of their games. Some might be paid monthly, others not. Some might have a flat rate of exploitation while others are just a % of revenue or a mix of both.

  • sumdumguy1sumdumguy1 Member RarePosts: 1,373
    Originally posted by jpnz

    40% down is 40% down.

    It paid itself several times over so the product was a success though.

    But with those figures I suspect someone at NCSoft or ANet (probably both) are going 'Expansion! NOW!'

    This is my hope and I suspect many others as well.  While I enjoy making new characters and leveling them to an extent, I am on my last slot now.

  • strangepowersstrangepowers Member UncommonPosts: 630


    Originally posted by jpnz

    Originally posted by aesperus Sigh, more people who apparently don't know how to read quarterly reports. NCSoft is actually up this quarter, though in some areas they are slightly down from last year. While GW2's sales are down this quarter, the games ~3 years old now. It shouldn't be that shocking that it's profits have dropped since launch. The fact that it's still selling as much as it is, is actually a good thing. Will NCSoft push for more? Probably, and tbh an expansion for the game would be a good thing. As was said by Kano, if anything this is more telling of Wildstar's performance. For a new game it's numbers aren't nearly as good as they should be.
    This post is factually false.

    GW2 was release on the 28th of Aug, 2012 which means it is TWO years old, not 3 years.

    I don't think anyone is shocked that GW2 performance is going down, esp since it is a B2P game but 40% is 40%.


    Don't be so hasty to remove all doubt...

  • WizardryWizardry Member LegendaryPosts: 19,332
    Originally posted by DamonVile

    Why do people look at 1 quarter and try and spin it like it means something. Do these companies not have ups and downs depending on what game just launched are they starting development on something new have they just spent a fortune advertising a new mmo...etc.etc.

     

    You can do a Google search,some company did a report that at least 30% of Steam purchases were never played even once.Then one of the genres was just over 50% never played once after the purchase.

    It says a LOT about the industry and the quality.Imagine how high the % is of games people played only very little to find out it was not good enough for them,i am guessing well over 50%.So developers are LUCKY they have sales as high as they do because of poor spending choices by gamer's. Those so fast to spend are  feeding developer's more money than their games deserve.I think the numbers also prove that players are just bored and buying almost ANY game that has decent hype.

    IMO we should all stop buying on a whim,wait until you can fully trial a game,don't be lured in by new shiny skins because eventually every one of these games are playing the same old we already been there a hundred times before.

    Let's start pushing this industry forward and demand developers give us a better effort,quit handing over free money to the rich.

    I might also add that it is EASY for a developer to have lower than expected profits,they have a free ticket to write themselves huge salaries and bonuses and have various ways to avoid tax paying.It is a fine line to produce big numbers for investors and paying millions in taxes.

    Never forget 3 mile Island and never trust a government official or company spokesman.

  • caetftlcaetftl Member Posts: 358
    Originally posted by Naqaj
    Originally posted by caetftl  The launch in china didn't seem to go as well as many had claimed

    NCsoft doesn't sell the game in China, KhongZhong does. Therefore revenue from the chinese launch is listed under royalties, not under sales. So whatever you think you're seeing there indicating an unsuccessful launch in china, you may want to look again.

     

     

    I think you may want to look again, their royalties are down, and that's WITH the gw2 launch in china, that should have at least bumped the royalties up for a quarter?  It didn't...

  • VorchVorch Member UncommonPosts: 793
    Originally posted by caetftl
    Originally posted by Naqaj
    Originally posted by caetftl  The launch in china didn't seem to go as well as many had claimed

    NCsoft doesn't sell the game in China, KhongZhong does. Therefore revenue from the chinese launch is listed under royalties, not under sales. So whatever you think you're seeing there indicating an unsuccessful launch in china, you may want to look again.

     

     

    I think you may want to look again, their royalties are down, and that's WITH the gw2 launch in china, that should have at least bumped the royalties up for a quarter?  It didn't...

    Your right caeftl. keep us posted next quarter, and the quarter after, and the quarter after that. I love your enthusiasm and number crunching at the release of every new quarterly report.

    I for one will only play a game based on it's quarterly finance reports. This is definitively the ultimate basis of how a game is performing, as we all know.

    It's only WoW and CoD for me from here on out!

    P.S. You're right, Naqaj. That said, being truthful, KhongZhong is one of the crappiest Chinese publishers known to man. They've turned GW2 into  F2P gemstore crazy town. However, despite caeftl's quarterly doom and gloom report, we seem to be doing just fine. I just feel bad for the chinese community.

    http://imgur.com/a/k9GA4#15

    "As you read these words, a release is seven days or less away or has just happened within the last seven days— those are now the only two states you’ll find the world of Tyria."...Guild Wars 2

  • Lord.BachusLord.Bachus Member RarePosts: 9,686

    the gw2 numbers are just the box sales, not including China.... And not including the gemshop... They put those numbers somewhere else...

     

    i am impressed they are still selling boxes, i am less impressed with the fact that there is not auction pack yet, hell no its not even announced yet...  

    Best MMO experiences : EQ(PvE), DAoC(PvP), WoW(total package) LOTRO (worldfeel) GW2 (Artstyle and animations and worlddesign) SWTOR (Story immersion) TSW (story) ESO (character advancement)

  • VicDynamoVicDynamo Member Posts: 234
    I have no idea what to do with any of those numbers so I don't know if the OP is right or wrong.
  • caetftlcaetftl Member Posts: 358
    Originally posted by Lord.Bachus

    the gw2 numbers are just the box sales, not including China.... And not including the gemshop... They put those numbers somewhere else...

     

    i am impressed they are still selling boxes, i am less impressed with the fact that there is not auction pack yet, hell no its not even announced yet...  

    Those numbers include box sales and microtransactions...  The chinese sales would be under royalties... unfortunately the release of gw2 in china was not big enough to give them a large enough boost in royalties to net a gain from the previous quarter...

     

    Originally posted by Vorch
    Originally posted by caetftl
    Originally posted by Naqaj
    Originally posted by caetftl  The launch in china didn't seem to go as well as many had claimed

    NCsoft doesn't sell the game in China, KhongZhong does. Therefore revenue from the chinese launch is listed under royalties, not under sales. So whatever you think you're seeing there indicating an unsuccessful launch in china, you may want to look again.

     

     

    I think you may want to look again, their royalties are down, and that's WITH the gw2 launch in china, that should have at least bumped the royalties up for a quarter?  It didn't...

    Your right caeftl. keep us posted next quarter, and the quarter after, and the quarter after that. I love your enthusiasm and number crunching at the release of every new quarterly report.

    I for one will only play a game based on it's quarterly finance reports. This is definitively the ultimate basis of how a game is performing, as we all know.

    It's only WoW and CoD for me from here on out!

    P.S. You're right, Naqaj. That said, being truthful, KhongZhong is one of the crappiest Chinese publishers known to man. They've turned GW2 into  F2P gemstore crazy town. However, despite caeftl's quarterly doom and gloom report, we seem to be doing just fine. I just feel bad for the chinese community.

    http://imgur.com/a/k9GA4#15

     

    MMOs that are good, perform well financially because they draw people to them.  That doesn't mean bad games can't perform well, but good games do not perform poorly. 

     

    I also find it amusing that the logical progression many fanbois have gone through is "khongzong is awesome" (when they misled people with unique login pr spin) to "khongzong is awesome!" (when a census of characters created was released and mistranslated into accounts sold) to "khongzong dropped the ball and it isn't gw2 the game that is faulty in any way". 

    It's almost as if your opinions on khongzong aren't actually based on any fact, but more on how they make your game look. 

  • VorchVorch Member UncommonPosts: 793
    Originally posted by caetftl
    Originally posted by Lord.Bachus

    the gw2 numbers are just the box sales, not including China.... And not including the gemshop... They put those numbers somewhere else...

     

    i am impressed they are still selling boxes, i am less impressed with the fact that there is not auction pack yet, hell no its not even announced yet...  

    Those numbers include box sales and microtransactions...  The chinese sales would be under royalties... unfortunately the release of gw2 in china was not big enough to give them a large enough boost in royalties to net a gain from the previous quarter...

    Read page 5 of the earnings report. Look at the title of the graph on the right. It literally says Sales by Games (excluding royalty).

    I don't know what you want.

    NCSoft's is up 45% from last quarter and up 55% from this time last year according to page 4. The title of page 4 reads: 

    "Revenues and profits increased thanks to new launches such as Wildstar in US/EU and Guild Wars 2 in China."

    .

    Parent company earnings are up 36% QoQ and 17% YoY. 

    GW2 sold #3 behind Lineage 1 (NCSofts golden goose) and Wildstar (just launched).

    Quarterly royalties for are down from 2014Q1, but up over 100% from exactly one year ago (2013Q2).

    .

    The worst thing that I can see is that box sales of GW2 went down...which is what happens with B2P games.

    And I guess you can say "Shame on GW2" for losing the #2 spot to a game that JUST launched.

    ------

     

    Don't worry caetftl...I'm just a fanboi and my mutterings are nonsense. Please post again next quarter.

    "As you read these words, a release is seven days or less away or has just happened within the last seven days— those are now the only two states you’ll find the world of Tyria."...Guild Wars 2

  • caetftlcaetftl Member Posts: 358
    Originally posted by Vorch
    Originally posted by caetftl
    Originally posted by Lord.Bachus

    the gw2 numbers are just the box sales, not including China.... And not including the gemshop... They put those numbers somewhere else...

     

    i am impressed they are still selling boxes, i am less impressed with the fact that there is not auction pack yet, hell no its not even announced yet...  

    Those numbers include box sales and microtransactions...  The chinese sales would be under royalties... unfortunately the release of gw2 in china was not big enough to give them a large enough boost in royalties to net a gain from the previous quarter...

    Read page 5 of the earnings report. Look at the title of the graph on the right. It literally says Sales by Games (excluding royalty).

    I don't know what you want.

    NCSoft's is up 45% from last quarter and up 55% from this time last year according to page 4. The title of page 4 reads: 

    "Revenues and profits increased thanks to new launches such as Wildstar in US/EU and Guild Wars 2 in China."

    .

    Parent company earnings are up 36% QoQ and 17% YoY. 

    GW2 sold #3 behind Lineage 1 (NCSofts golden goose) and Wildstar (just launched).

    Quarterly royalties for are down from 2014Q1, but up over 100% from exactly one year ago (2013Q2).

    .

    The worst thing that I can see is that box sales of GW2 went down...which is what happens with B2P games.

    And I guess you can say "Shame on GW2" for losing the #2 spot to a game that JUST launched.

    ------

     

    Don't worry caetftl...I'm just a fanboi and my mutterings are nonsense. Please post again next quarter.

    Yes those are sales by game... not box sales by game... microtransactions for gw2 fall under sales for gw2.  microtransactions are included in the revenue reported for gw2 sales... You really gotta look again and understand accounting nomenclature...

     

    The rest of your post really has no teeth behind it either... obviously revenue and profit are going to go up for entities that weren't part of their sales at all before last quarter.  Obviously gw2 being released in china will earn them more revenue than gw2 not being released in china... it's a new source of income, obviously a fresh game like wildstar being released is going to earn them more revenue and profit  than before it was ever released. 

     

    Royalties are down on the quarter, which means the release of gw2 in china was not enough to temporarily boost revenues to outweigh life before china gw2 the quarter before it... that is not a good sign. 

  • VorchVorch Member UncommonPosts: 793
    Originally posted by caetftl

    Yes those are sales by game... not box sales by game... microtransactions are included in the revenue reported for gw2 sales... You really gotta look again and understand accounting nomenclature...

    You include sales, box sales, and microtransactions to fit whatever story you are telling. So you win. i'm the fanboi I guess :/ Back to playing enjoying clearly dying MMO.

     

    I look forward to your timely report on GW2's failings in 3 months.

    "As you read these words, a release is seven days or less away or has just happened within the last seven days— those are now the only two states you’ll find the world of Tyria."...Guild Wars 2

  • caetftlcaetftl Member Posts: 358
    Originally posted by Vorch
    Originally posted by caetftl

    Yes those are sales by game... not box sales by game... microtransactions are included in the revenue reported for gw2 sales... You really gotta look again and understand accounting nomenclature...

    You include sales, box sales, and microtransactions to fit whatever story you are telling. So you win. i'm the fanboi I guess :/ Back to playing enjoying clearly dying MMO.

     

    I look forward to your timely report on GW2's failings in 3 months.

    No... i include them because they are included in the financial reports... you would be the one trying to misconstrue information to illustrate a narrative that you would find more pleasant. 

     

    A microtransaction sale is considered a sale for gw2... it falls under sales for gw2 in "sales by game" section.  No one is weaving that in for nefarious purposes... that's just how accounting is reported... that's reality... you can either accept it or not...

    Also have fun in gw2... let me know how the pvp is going...

  • SoandsosoSoandsoso Member Posts: 533

    I thought GW2 was the death of sub-based games and the trinity. Well, that was what the GW2 fans were posting in every other game forum.

     

    To be expected though. I remember a poll where someone asked if anyone would spend money beyond the box price. last I looked 70% responded no.

     

    Well Anet, this is the crowd you wanted and apparently they don't have your back.

This discussion has been closed.